Delay liquidations during market instability

During the recent market crash this week, I was unable to repay my loan because the system was overloaded and it took almost an hour and over 20 attempts until the repayment went through.

During this time my loan was above the LTV value and could have been liquidated. Since I had the money on hand to repay the loan and the only reason for liquidation would have been the system’s instability, it would clearly have been unfair if my loan was liquidated and this issue is now preventing me from increasing my loan again despite the recent jump in Luna’s price.

To address this, I would like to propose at least a four hour window when a loan goes over the LTV ratio before it can be liquidated so that the loan holder has time to repay the loan. This is necessary until the system is proven to handle peak load without the unacceptable delays seen on Tuesday.

A major benefit of this is that it will allow people to increase their loan size without the threat of liquidation purely because of system infrastructure issues which Project Dawn will eventually address.


I agree - having a healthy borrowing market is vital and it makes no sense for infrastructure congestion to play a role in people’s risk decisions.

A 4-hour window would really help ensure people could react and bring further funds in to secure their position which would ultimately reduce overall protocol instability.


Times of market volatility are when its most important for timely liquidations to happen for the solvency of the protocol.

Columbus-5 activating in 2 weeks will address a significant amount of the load issues.

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I agree with ZenDog. But also, there are third party protocols coming online in the near future that will offer auto-repayment based on LTV, So as long as you have some cash sitting in Earn (which you should), you’ll never need to worry.

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+1 on this. High volatility markets are exactly when liquidations become the most important.