Liquidation Improvements based on Health-Factor#535
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Debugger022 wants to merge 51 commits intodevelopfrom
Open
Liquidation Improvements based on Health-Factor#535Debugger022 wants to merge 51 commits intodevelopfrom
Debugger022 wants to merge 51 commits intodevelopfrom
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chechu
reviewed
Jul 21, 2025
| /** | ||
| * @notice Multiplier representing the discount on collateral that a liquidator receives | ||
| */ | ||
| uint256 public liquidationIncentiveMantissa; |
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Maintain the attribute, to not break the storage layout. Simply rename it to "deprecatedLiquidationIncentiveMantissa"?
chechu
reviewed
Jul 21, 2025
contracts/ComptrollerStorage.sol
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| // Per-market mapping of "accounts in this asset" | ||
| mapping(address => bool) accountMembership; | ||
| // discount on collateral that a liquidator receives when liquidating a borrow in this market | ||
| uint256 liquidationIncentiveMantissa; |
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Suggested change
| uint256 liquidationIncentiveMantissa; | |
| uint256 maxLiquidationIncentiveMantissa; |
chechu
reviewed
Jul 21, 2025
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I would avoid changes in the VToken contract, if it's doable. Because vBNB cannot be upgraded
chechu
reviewed
Jul 21, 2025
contracts/lib/Liquidation.sol
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| import { Comptroller } from "../Comptroller.sol"; | ||
| import { VToken } from "../VToken.sol"; | ||
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| library Liquidation { |
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I think this could be a contract, to be deployed externally and then set in the Comptroller with a new privileged function. That would allow us to update the Liquidation logic on runtime. Just to review it
chechu
reviewed
Jul 28, 2025
contracts/Comptroller.sol
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| event DelegateUpdated(address indexed approver, address indexed delegate, bool approved); | ||
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| /// @notice Emitted when the liquidation manager is set | ||
| event LiquidationModuleSet(address indexed ILiquidationManager); |
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Suggested change
| event LiquidationModuleSet(address indexed ILiquidationManager); | |
| event NewLiquidationManager(ILiquidationManager indexed oldLiquidationManager, ILiquidationManager indexed newLiquidationManager); |
chechu
reviewed
Jul 28, 2025
contracts/Comptroller.sol
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| uint256 closeFactor; | ||
| unchecked { | ||
| if (snapshot.healthFactor >= 1e18) revert InsufficientShortfall(); |
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Use MANTISSA_ONE instead of 1e18?
chechu
reviewed
Jul 28, 2025
contracts/Comptroller.sol
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| uint256 closeFactor; | ||
| unchecked { | ||
| if (snapshot.healthFactor >= 1e18) revert InsufficientShortfall(); |
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I don't think we need this check, because if healthFactor is greater than 1, then the snapshot.shortfall should be 0, and the TX would have been reverted in the line 727
chechu
reviewed
Jul 28, 2025
contracts/Comptroller.sol
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Comment on lines
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| if (snapshot.healthFactor >= snapshot.healthFactorThreshold) { | ||
| uint256 numerator = borrowBalance * 1e18 - wtAvg * snapshot.totalCollateral; | ||
| uint256 denominator = borrowBalance * | ||
| (1e18 - ((wtAvg * (1e18 + marketCollateral.maxLiquidationIncentiveMantissa)) / 1e18)); | ||
| closeFactor = (numerator * 1e18) / denominator; | ||
| closeFactor = closeFactor > 1e18 ? 1e18 : closeFactor; | ||
| } else { | ||
| closeFactor = 1e18; | ||
| } |
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Maybe we could also move the calculation of the variable close factor to the LiquidationManager
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Description
[VEN-3319]: Dynamic Liquidation Incentive and Close Factor in IL.
[VEN-3320]: Define maximum Liquidation Incentive per seized asset in IL.
This PR introduces a dynamic liquidation mechanism that adjusts the close factor and liquidation incentive based on the borrower's Health Factor (HF).
If HF > 1 → no liquidation
If HF ≤ 1 and > HFTTL:
If HF ≤ HFTTL:
Note: The Comptroller contract has grown beyond 24KB due to the introduced logic.
Checklist