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@Debugger022 Debugger022 commented Dec 4, 2025

Description

This VIP introduces enhanced liquidation mechanisms to the Venus Core Pool on BNB Chain Testnet, implementing the following improvements:

  • Liquidation Threshold: Adds the concept of liquidation threshold to the Core Pool, enabling more granular control over when positions become eligible for liquidation
  • Dynamic Liquidation Incentive: Implements dynamic liquidation incentives that adjust based on market conditions and account health factors
  • Dynamic Close Factor: Introduces dynamic close factors that vary based on borrower position health
  • Maximum Liquidation Incentive: Defines maximum liquidation incentive limits per seized asset to protect borrowers from excessive liquidation penalties

Contract Upgrades

This VIP will perform the following:

  • Upgrade Comptroller (Unitroller) to new Diamond implementation with updated facets
  • Deploy and configure the new Liquidation Manager contract
  • Upgrade VAI Controller with updated liquidation logic
  • Upgrade Liquidator contract to support dynamic incentives
  • Upgrade all Core Pool vTokens to new implementation
  • Update Comptroller Lens for new data structures
  • Configure new access controls for liquidation parameters

@Debugger022 Debugger022 changed the title [VPD-301]: Testnet VIP and Simulation for launch “repay improvement” and “liquidation improvements” [VPD-301]: VIP for liquidation improvements and updating repayment logic Dec 8, 2025
@Debugger022 Debugger022 marked this pull request as ready for review December 9, 2025 06:45
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2 participants