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Difference between revisions of "Liquity"
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Once the Recovery Mode is triggered, any safe below a collateralization ratio of 150% can be liquidated. During recovery mode, user actions are restricted: any trove-related action that lowers the collateralization ratio below 150% is blocked. New troves can only be opened if they have a ratio >150% and 0% borrowing fees.<ref>https://docs.liquity.org/faq/recovery-mode#what-is-recovery-mode</ref> | Once the Recovery Mode is triggered, any safe below a collateralization ratio of 150% can be liquidated. During recovery mode, user actions are restricted: any trove-related action that lowers the collateralization ratio below 150% is blocked. New troves can only be opened if they have a ratio >150% and 0% borrowing fees.<ref>https://docs.liquity.org/faq/recovery-mode#what-is-recovery-mode</ref> | ||
[[File:May-19-liquidations.png|alt=liquity trove count|thumb|Evolution of the Troves count the day the last time Recovery Mode was triggered]] | |||
The Recovery Mode is an emergency mechanism and not a desirable state for the system. Its purpose is to restore the collateralization level of the whole platform to a sustainable range. The Recovery Mode also acts self-negating deterrent: the possibility of it occurring actually guides the system away from ever reaching it. | The Recovery Mode is an emergency mechanism and not a desirable state for the system. Its purpose is to restore the collateralization level of the whole platform to a sustainable range. The Recovery Mode also acts self-negating deterrent: the possibility of it occurring actually guides the system away from ever reaching it. | ||