Liquidations & Fees

Liquidations

Debtors are subject to liquidations if the LTV is surpassed, either by sharp falling of the collateral asset's value or the withdrawal of too much collateral while loans are still outstanding. The LTV sets the risk threshold, and the asset specific over-collateralization needs to be kept within a safe ratio to avoid liquidations. Always double check you ratios before processing a liquidity operation.

Partial liquidations: once a liquidation is triggered, a 50% partial liquidation executes with a 15% liquidation incentive to third party liquidation bots. The remaining 35% is returned to the debtor, restoring his position health. This is a safety measure that protects LPs from 100% liquidation.

Protocol Fees

Genera derives revenue from a 10% fee on interest paid and liquidation penalty fees on liquidations. Any revenue is accumulated in the protocol treasury. Accumulated revenue may be used for token buybacks to support long term token operations.

ERC-4626 & Isolated Pools

Genera supports ERC-4626 as collateral by default, enabling new DeFi strategies on Neura with yield bearing assets including Liquid Staking Derivatives and Yield Bearing Stablecoins. Liquidation parameters and fees may differ for custom ERC-4626 markets.

Genera supports fully customizable modular isolated pools, with one collateral asset and one loan asset, to maximize risk management for specific assets with fully custom LTV and rate model available. Custom liquidation parameters and fees may be set.