Liquidation Market
The venue for protocol solvency and discounted asset acquisition.
The Liquidation Market is Juris Protocol’s dedicated venue for purchasing under-collateralized assets at a discount. It ensures protocol solvency by allowing users to act as liquidators, acquiring assets while helping the protocol recover debt.
Explore the Liquidation Ecosystem
Select a guide below to learn how to participate in the market and manage your strategies:
Step-by-Step Tutorial: Bidding & Buying Collateral
A complete walkthrough on setting up your $USTC bids, entering the queue, and redeeming successful bids for discounted assets.
Liquidation Strategies for Opportunistic Users
Advanced tactics for maximizing profit through strategic discount tiers and timing.
Important information on capital lock-ups, market volatility, and the protocol protection layers (like 30-second TWAP) designed to keep the system solvent.
How it Works
When a borrowing account’s Health Factor falls below 1.0, the protocol triggers an on-chain auction. Juris Protocol utilizes a "Queue" system to handle these events efficiently:
Commitment: Bidders commit $USTC (or other whitelisted stables) to the liquidation queue in advance.
Discount Tiers: Bidders choose a maximum discount they are willing to accept for the collateral.
Execution: If liquidation is triggered, the system fulfills bids from the lowest discount to the highest until the debt is fully repaid.
Redemption: Any remaining collateral value (minus the debt and liquidator fees) is returned to the original borrower.
Comparison: Juris vs. Traditional Models
Juris Protocol introduces a more flexible approach to liquidations compared to standard single-asset models (such as Kujira-style queues).
Feature
Juris Protocol
Single-Asset Models
Collateral Composition
Multi-asset baskets; can liquidate bundles or individual "lots."
Single-token collateral only.
Bid Currency
Primarily $USTC; governance can whitelist others.
Restricted to one specific stablecoin.
Fills
Partial fills across multiple assets in a basket.
Partial fills limited to a single asset.
Queues
Separate queues per asset within each basket.
One queue per collateral asset.
Pricing
TWAP Oracles to prevent price manipulation.
Standard or on-chain feeds.
The Liquidator's Strategy
[!TIP]
Lowest Bid Wins First: The protocol prioritizes the most efficient bids (those with the lowest discount). If you want to ensure your $USTC is utilized quickly, set a lower discount percentage. Higher discounts offer more profit but sit further back in the execution queue.
Oracle Safety
To prevent "Flash Loan" attacks or sudden price manipulation from triggering unfair liquidations, Juris Protocol uses a Time-Weighted Average Price (TWAP) from our decentralized oracle module.
This ensures collateral is only liquidated based on true market movement, not temporary volatility. By averaging the price over a set period, the protocol remains resilient against single-block price spikes that could otherwise harm borrowers.
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