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Difference between revisions of "Liquity"
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Adding info about the one and only triggering of the Recovery Mode
TokenBrice (talk | contribs) (Content for sub-sections: Recovery Mode + Dual Oracle System + Liquidations) |
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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. | ||
So far, the Recovery Mode was triggered only once during the ETH flash crash that occurred May 19th 2021. 189 Troves were liquidated during the triggering of the Recovery Mode for a total of 93.5M of LUSD debt offset and 48 668 ETH earned by Stability Pool depositors. A detailed post-mortem of the event is available on the Liquity's blog.<ref>https://medium.com/liquity/how-liquity-handled-its-first-big-stress-test-160f20d5b18f</ref> | |||
=== Redemption === | === Redemption === | ||