When the staking ratio of the treasury is less than or equal to the liquidation ratio, the treasury will be forced to liquidate, thus liquidation.
Calculation method of key parameters:
Staking rate = Total amount of staking items × EOS 5-min AVG / (total amount of USN generated + treasury interest) ×100%
Liquidation rate = 125%
When a treasury is automatically liquidated, the system will deduct 5% of the staking items in the treasury as the liquidation penalty. The corresponding interest will be converted based on the latest EOS price and deducted from the staking items.
The remaining staking items will be bid when liquidation, at a discount price in exchange for a full amount of USN.
After bid is completed, any remaining staking items will be returned to the user.