Just as we help the ecosystem grow, it also strengthens the protocol, as the liquidators profits are used to buy back LIQ on the open market, and redistributed back to LIQ liquidity providers. A portion of the profits is also redistributed back to the insurance fund to keep up with continuous growth and expansion. To manage the risk of holding volatile assets in the liquidators required holdings, the liquidators assets are constantly hedged to keep a delta-neutral position.
Liquidation Engine