[AAVE V3 Lending Protocol] Issue 3: Liquidation Mechanism

[polarker]

Parent issue: #23

Objective:

Implement the liquidation process for under-collateralized positions, including conditions, collateral purchase, and debt repayment mechanisms.

Description:

This issue focuses on creating a mechanism to liquidate collateralized positions that fall below the required collateral ratio and enabling liquidators to purchase collateral to repay debt.

Tasks:

1. Set up conditions for triggering liquidation of under-collateralized positions.
2. Implement logic for liquidators to purchase collateral at a discount to repay part of the borrower’s debt.
3. Write tests to validate the liquidation process, including edge cases.

Acceptance Criteria:

• Liquidation triggers correctly when collateral ratios fall below the threshold.
• Liquidators can purchase collateral and repay debt securely.
• The protocol maintains stability and fairness during liquidation events.
• Tests ensure the reliability and security of the liquidation process.

[Akshola00]

@polarker can i work on this
would really love to contribute to this project

[polarker]

@polarker can i work on this would really love to contribute to this project

Do you think you could work on this without issue 1 and issue 2?

[Akshola00]

No I can't you can assign this to me and when 1 and 2 are done I can work it

[ShantelPeters]

Could I take over this issue?

[JoE11-y]

I’m interested in this one.

[Supa-mega]

Can I work on this, please?

[bruhhgnik]

Hi, I’m interested in working on this issue. I have experience implementing liquidation mechanisms in DeFi protocols. I’d love to contribute to this task. Please let me know if I can proceed!

[mimisavage]

Can I tackle this one?

[kfastov]

Hi! I think we'll assign this issue later, when issues 1 and 2 will be done

[abdegenius]

Let me try this one!

[CEOliam]

Can I take this issue?

[aniruddhaaps]

To address this issue I would implement a liquidation mechanism that triggers based on when collateral ratios are lower than the threshold to ensure that liquidators can purchase collateral at a discount to repay debt. The whole process must maintain stability, fairness, and security in executing transactions. Validate the system with thorough tests on all edge cases and normal scenarios.

[Akshola00]

Thanks @polarker
Will start work now

[kfastov]

Hi, @Akshola00 !
It's clear that you just started working on that issue, but please kindly submit a draft PR shortly.
We'll have to unassign inactive contributors (which is not your case I believe)

[Akshola00]

hey @kfastov
will do so

[OJDIT]

I'd love to give this a go.

[olisaagbafor]

Could I be assigned to this?

[savagechucks]

Hey, my name's Isaac.
I'm a frontend dev and I'd like to take on this issue.
ETA: 2days

[Jagadeeshftw]

Could I take over this issue?

[greatest0falltime]

Can I work on this, please?

[emarc99]

Can I take care of this issue?

[1nonlypiece]

I would like to work on this