Liquidation Vault

The Liquidation Vault pools assets for participation in liquidations. Depositors receive CW20 share tokens representing a proportional interest in the vault’s net asset value. Configured bidder and allocator roles manage bids and inventory.

This is different from supplying a single asset to a lending pool. The vault can hold a changing basket of assets, including inventory committed to bids, and its value depends on oracle prices and the results of its activity.

Deposit and shares

Before depositing, confirm the vault’s base asset and review its holdings and share price. The contract values deposits against net asset value and mints shares accordingly. A share count is not a promise to receive the same number of units of the original asset later.

Use the deposit action on the Juris liquidation page to enter the vault. The vault manages queue participation through its configured roles.

Request redemption

Redemption is a request process. Shares are placed in escrow, and fulfillment pays a basket of available holdings. The request can be pending, partially fulfilled or fulfilled. Only the shares corresponding to fulfilled redemption are burned.

A vault can have positive net asset value while some inventory is locked in bids. Available inventory therefore matters independently of the headline value. Immediate withdrawal and return entirely in the original deposit asset are not guaranteed.

Understand the exposure

Liquidation discounts do not guarantee a profit. Price movements, inventory composition, available liquidity, oracle behavior and the actions of configured roles affect outcomes. A deposit can lose value.

Redemption burns the corresponding vault shares and pays assets to the user. It does not burn LUNC. For protocol architecture and role controls, continue to Architecture and Security.