Liquidators

Liquidators are essential participants who help maintain the protocol’s financial health by ensuring that borrowing positions remain adequately collateralized.

External Liquidators

External liquidators monitor the protocol for under-collateralized positions and initiate the liquidation process to profit from selling the acquired collateral on external AMMs at a discount. A portion of the liquidation profit is deducted and provided to stability providers. Liquidators can use any route to swap collateral for trenUSD or utilize the TrenRouter contract, which facilitates this process.

Tren Liquidation Bot

The Tren liquidation bot continuously monitors all TrenBoxes and automatically liquidates positions through the FlashLiquidate function and the TrenRouter contract on behalf of the community. All profits generated by the bot are allocated to backstop providers in TREN through the stability rate controller, ensuring that the community benefits directly from the liquidation process.