The Clynto protocol's liquidation process aims to protect lenders while ensuring fairness for borrowers, governed by specific rules regarding liquidation initiation, notice periods, and procedures. Key scenarios include early liquidation notices, which require a minimum holding period and a notice period, and instant liquidation under certain conditions. The process allows for partial collateral liquidation and asset swaps to recover investments, promoting stability and trust within the Clynto ecosystem.
Documentation
- The Loan Health Monitoring System within the Clynto ecosystem offers real-time insights into active loans, focusing on Loan-to-Value (LTV) ratios, interest accrual, and collateral market value. It categorizes loan health into three statuses (Green, Yellow, Red) and provides alerts for critical changes. Benefits include enhanced tracking for borrowers and lenders, informed decision-making, and improved user engagement through a user-friendly dashboard and notification system. Overall, it aims to manage risks effectively and support the stability of the Clynto platform.
- The Nectar Points System incentivizes users on the Clynto DeFi platform through off-chain activities such as loan transactions, staking, and referrals, allowing them to earn points that can be claimed on-chain for fee reductions and premium features. The system includes processes for earning, claiming, and redeeming points, ensuring security and integrity through smart contract interactions and backend verification.
- The protocol is designed to provide a borrower-centric ecosystem, where users retain control over their assets and are empowered to choose loan terms and interest rates, all governed by a community-driven system.