After liquidation within the balanced, bad situation

#1

Hi, guys.

Many people must be struggling with the recent decline in the value of all-time assets.

Me too, BTC that I left as BALANCEd collateral in the process of BTC’s biggest drop today has been liquidated.

I originally had an ‘old’ BTCB, but with this BTC integration I changed BTC and then got a loan again I ended up paying another high fee.

My idea to save more fees has become more solid in this BTC drop as I’ve been going through double fees, and I’ve been paying off my loans little by little to save on fees, and I’ve been liquidated.

I was stupid, it was my mistake. I should have managed my assets safely.

By the way, I’m in a situation where I can’t do anything now that I’ve been liquidated in ‘BALANCED’.

Borrowed bnUSD → Even if I try to buy BTC again, I can’t buy it because I don’t have BTC liquidity volume,
Even if I try to go to another external exchange and buy BTC, I don’t even have USDC liquidity to swap to bnUSD → USDC.

I had no choice but to see BTC prices go up again after getting liquidated. I’m feeling lethargic.

My situation is very bad,

So, I’m going to ask my DAO friends for help.
Shameful, but is there any best way to help people like me who have been liquidated by this drop?

Please note that I have tried a lot to promote Balanced to Korea and translate the functions into Korean.

Please help me keep letting more people know about Balanced in the future!

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#3

I’m thinking.
If the liquidity supply of “Balanced” is as low as it is now,
If a large amount of money is liquidated at once, the liquidated assets cannot be purchased at a normal price again, and stable coins that can go outside are also limited and blocked, so the current liquidation system seems to be problematic.
I think we need a method of phased liquidation that was applied in the past, at Omm, not liquidation of all amounts at once.
(Probably, ‘Balanced’ also seems to be considering a soft liquidation approach. I think I saw it in the ‘Balanced’ roadmap Q3 update list.)

However, me or the liquidated person is important ‘now’.
I knew and used a program with risks, but I want you to know that the problem with the system after the actual liquidation is greater than the theoretical situation imagined, and that the damage is too severe because there is nothing the liquidated person can do.

I hope, if possible, that even if I suffer a little damage, I will return to the collateral, even if only a portion of the assets that I left as collateral for liquidation. (Without harming the balanced system)

This is because if the liquidated assets are large, even if you have bnUSD, you can’t buy the assets that were liquidated again in a normal amount. (I think this is the most important issue.)

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#4

Really sorry to hear about this @SimSul. Unfortunately I don’t have any specific ideas in mind, but you have been a long-time community member and supporter, so it would be a shame to lose you.

Hope it works out

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#5

[Summary of the problem]

  • People whose ‘Cross-Chain Assets’ have been liquidated through loans

  • a person with a ‘Large Amount’ of assets being liquidated

  • Balanced’s current liquidity is so low that it cannot buy back the asset.

  • There is a 15% limit on the total amount of assets to be transmitted outside the balanced, so it is not possible to send them to an external exchange to purchase them.

  • Victims who have been liquidated are in a state of being unable to do anything even if they have bnUSD left. In the meantime, the price of collateral assets goes up.

  • It becomes a situation in which the damage of liquidation must be taken too seriously.

[How to relieve the victim]

  • In the past, some compensation was helped with balanced DAO funds due to the rebalancing system. Consider a method of compensating a portion of the liquidation amount with a similar system. (Balanced)

  • Alternatively, some compensation is sought through ICX ‘Emergency Funds’. Emergency Fund – ICON Documentation

  • Limiting the scope of compensation to those who suffered damage because they could not repurchase the liquidated assets after the liquidation of ‘a large amount’ of assets after the liquidation, not due to general liquidation.

  • You shouldn’t just think of the people you use earlier as testers, you should help.

  • ICON and the balanced team strive to promote cross-chain balanced. However, the satisfaction of users who used the current cross-chain loan earlier should also be considered.