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
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    • Forum Discussions
  • COMMUNICATION
    • Contact Us
    • Team Contacts
  • USER GUIDE
    • Frequently Asked Questions
    • DeFi Glossary
  • BRAND ASSETS
    • Logo Package
    • Color Palette
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  1. PROTOCOL DOCUMENTATION
  2. Lending
  3. Liquidation

Stability Pool Liquidations

When a Vault is liquidated, the amount of EURO3 corresponding to the remaining Vault debt is burned from the Stability Pool’s balance to repay its debt. In exchange, the entire collateral from the Vault is pro-rata distributed among Stability Providers.

Stability Providers can immediately withdraw the collateral received from liquidations and sell it to reduce their exposure to collateral tokens.

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Last updated 1 year ago