3A Lending Protocol
  • 👋Welcome to 3A
    • Quick Start
  • PROTOCOL DOCUMENTATION
    • Lending
      • Vaults
        • Issuance Fee
      • Stability Pool
      • Liquidation
        • Stability Pool Liquidations
        • Dutch Auction
        • Community Liquidations
      • Redemptions
    • EURO3 Coin
      • EURO3 Price Stability
      • WatchDog Bot
    • A3A Token
      • A3A Staking and Cashbacks
      • A3A Rewards
    • 3A Ecosystem Incentives
    • Premium Services
      • Vault Optimization Bot
  • TECHNICAL DOCUMENTATION
    • User Interface
    • Smart Contracts
      • Linea Mainnet Contracts
      • Polygon Mainnet Contracts
      • RedBelly Testnet Contracts
      • API
      • Interacting with contracts
        • Creating a vault
        • Adding and removing collateral
        • Borrowing and Repaying
    • Audit Report
      • Hypernative
    • Bug Bounties
  • WHITELISTING CRITERIA
    • Overview
    • Mandatory Requirements
    • Risk Methodology
      • Fundamental Risk Score
      • Technical Risk Score
      • Market Risk Score
    • Risk Sensitive Parameters
    • Whitelisted Tokens
  • COMMUNITY REWARDS
    • Centurion
    • Referral System
  • GOVERNANCE
    • 3A DAO
    • Voting
    • Forum Discussions
  • COMMUNICATION
    • Contact Us
    • Team Contacts
  • USER GUIDE
    • Frequently Asked Questions
    • DeFi Glossary
  • BRAND ASSETS
    • Logo Package
    • Color Palette
Powered by GitBook
On this page
  1. PROTOCOL DOCUMENTATION
  2. Lending
  3. Liquidation

Community Liquidations

In the event that the Stability Pool runs out of funds and the Dutch Auction is canceled, the collateral is sold on the spot market by the 3A DAO, and the EURO3 proceeds are used to pay the debt in the Vault.

If there’s a surplus, the remaining EURO3 is sent to the cashback pool. If there’s a deficit, the unpaid debt is automatically distributed over the remaining Vaults, proportionally to the existing debt in the Vaults.

PreviousDutch AuctionNextRedemptions

Last updated 1 year ago