Manual Liquidations
Manual liquidations can be performed by any user without any technical knowledge. They allow the user to take custody of the insolvent user's assets at a discount by paying their debt. User's can keep track of positions approaching insolvency through our Liquidation App.
Example:
When a user's health factor reaches 1, the system flags the position as insolvent. In the above example, the user has borrowed 0.0125 BTC using 0.2203 ETH as collateral.
When the position is flagged, the user may provide the 0.0125 BTC to unlock the 0.2203 ETH at a large discount (10%-35% discount, depending on the LT).
On-chain instructions
Have 0.0125 WBTC in your wallet.
Approve the "ManualLiquidation" Contract in the WBTC ERC-20 Contract.
ManualLiquidaiton - Arbitrum:
https://arbiscan.io/address/0xEbF50C87a41Cfcc740202464919c1f5988022453#code
ManualLiquidation - Ethereum:
https://etherscan.io/address/0x669229276F5625046D6A1017C3258315Ba69c72E
Call "executeLiquidation(user, silo) with the respective user address and silo.
And You're done! You will now see the WBTC has left your wallet and been replaced by the insolvent user's ETH Collateral.
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