HodlTree & Paraswap: Make Liquidation Efficient

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We are partnering with Paraswap! The HodlTree makes the liquidation procedure efficient with this decentralized aggregator.

The HodlTree protocol initializes liquidation procedure, in case the number of borrowed funds exceeds user’s borrowing capacity. The loan will be liquidated with a discount from the current price to attract arbitrageurs. If it’s not enough, the protocol will start liquidation procedure by itself using the decentralized aggregator Paraswap.

Any user that possesses the borrowed asset can take part in liquidation. All funds left after liquidation will be available to Borrower for withdrawal.

Liquidation procedure

Liquidation procedure

About Paraswap:

Paraswap aggregates multiple decentralized exchanges into one place so that the rates often beat the market price. The service splits orders across multiples exchanges into one optimized and secure transaction. They also use GasToken.io (GST2), when possible, so that network fees are cheaper. Paraswap is free and doesn’t take any transaction fees.

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About HodlTree:
HodlTree is a second-generation decentralized lending protocol.
Our mission is to provide significantly improved interest rates for lenders, with a targeted rate of 8 to 20%+ APY, and a zero interest rate for borrowers.

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The Content is for informational purposes only, you should not consider any such information or other material as legal, tax, investment, financial, or other advice.