LIQ Protocol is an on-chain liquidation protocol built for Serum DEX margin markets and lending platforms on the Solana network.
The protocol provides liquidity through its engines to manage liquidations fulltime for Solana and Serum based margin / borrowing projects, which allows projects to have a solidified backend for dealing with settlement liquidity.
The liquidator checks for overexposed accounts, prepares those accounts for liquidation, then provides funds to the liquidated accounts liabilities, and in return receives funds from the liquidated account’s collateral. The profits are in turn shared through LIQ LP staking rewards.
Powered by Solana
Solana is a high-performance and permissionless blockchain that is part of the next generation of cryptocurrency technology. Solana works via Proof of History (PoH), PoH operates through sequential functions. Solana is able to currently handle over 50,000 transactions per second with near-zero latency, and has a theoretical maximum of over 700,000 transactions per second.
Serum Ecosystem
Serum is a decentralized exchange (DEX) and ecosystem that brings unprecedented speed and low transaction costs to decentralized finance. It is built on Solana and is completely permissionless. LIQ Protocol strengthens the Serum Ecosystem and keeps margin exchanges built on Serum healthy by handling liquidation events, and keeping margin accounts balanced on different lending platforms.
Liquidation Engine
The liquidator is a program that initiates the liquidation process. It is permissionless and decentralized. The liquidator checks for overexposed accounts, prepares those accounts for liquidation, then provides funds to the liquidated accounts liabilities, and in return receives funds from the liquidated account’s collateral.
