Self-liqudation option?

I’m curious as to why there isn’t any mechanism in place that allows you to self-liquidate a portion of your collateral in order to keep from being hit with a full liquidation event? Right now, the Lunas price is dropping pretty hard and I would like to reduce my debt ratio but the only way I can is to add more collateral or pay down the loan with UST.

Neither of those is an option at a moment. But I would be willing to sell a chunk of the collateral to bring it down enough to survive the dip, nut there isn’t any way for me to do that.


Wouldnt your ratio still be the same though?

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It’s been discussed to be a first feature after Anchor introduces flash/uncollaterized loans, right now it’s not feasible as the way Anchor works is if your collateral dips below the threshold you go into the liquidation queue, so it would be tricky to take it out and sell without triggering that mechanism. With flash loans it’s super easy, flash loan to pay down to the desired level take collateral out and sell to repay.

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Yeah, I think flash loans should be implemented even if strictly for this reason, I’m trading against the liquidation event and glad to see all that UST run off the top of the balance sheet finally. Should put the protocol in a much healthier position.

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With a single api call, any smart contract can flash borrow from the combined holdings of all the flash loan enabled reserves. This allows anyone to borrow up to billion USD worth of tokens from the combined holdings