Synthetic Asset Protocol Synthetix to Update Liquidation Mechanism

Synthetix, the synthetic asset protocol, has announced that it will update its liquidation mechanism to incentivize stakers to consider the big picture and eliminate forced liquidation in extreme market conditions. The current Synthetix liquidation mechanism automatically liquidates when the stakers' collateral ratio falls below the system's required value. The new updated liquidation mechanism will give the user 24 hours to raise the collateral ratio if the user's collateral ratio is less than 200%, and if the user does not liquidate itself, the liquidation will be carried out by the liquidator and the user will bear a penalty of 30% of the collateral $SNX amount; if the user liquidates itself, it will bear a penalty of 20% of the collateral $SNX amount; if the user raises the collateral ratio above 200% within 24 hours, it will not be Liquidated.


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