Implement manual liquidation path #77

jordanschalm · 2025-12-17T02:54:31Z

Closes: #93

Description

Implements a manual liquidation path. Anyone is allowed to perform a liquidation under the following circumstances:

The position is unhealthy (H<1)
The liquidation offer provides a better implied price for the seized collateral than the protocol could get from a DEX
The liquidation offer does not cause the health to exceed target (1.05)
The price provided by the DEX does not diverge too far from the price provided by the oracle

Notes for reviewers

This PR excludes logic related to DEX pricing (and associated tests) to keep PR size under control. The DEX portion of the implementation is commented out, and will be revised in Implement basic DEX interface SwapperProvider #94. [DRAFT] DEX interface for FCM #102 contains a preliminary interface for the DEX.

assets

cadence/contracts/FlowCreditMarket.cdc

Conflicts: cadence/contracts/FlowCreditMarket.cdc

run flow deps install FlowTransactionScheduler per https://flow-foundation.slack.com/archives/C08QF29F7TK/p1765918094418619?thread_ts=1765904362.928639&cid=C08QF29F7TK to fix imports

at this commit, failing on assert(initialHealth >= 1.0, message: "Cannot liquidate healthy position: \(initialHealth)>1")

now we are failing on missing dex handle, as expected

… into jord/liquidation

cadence/contracts/FlowCreditMarket.cdc

jordanschalm added 5 commits December 16, 2025 18:52

add todos while reviewing existing code

2ed0198

more todos and documentation

aa982a7

skeleton of manual liquidation

1821da4

add health check: must be <=target after liquidation

5b53c1f

implement internal liquidation function + bound checks on seize/repay

9457d0d

assets

jordanschalm changed the title ~~[DRAFT] Improve Liquidation~~ [DRAFT] Implement manual liquidation path Dec 20, 2025

jordanschalm requested a review from dete December 20, 2025 00:45

turbolent reviewed Dec 20, 2025

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jordanschalm added 11 commits January 5, 2026 10:44

Merge branch 'main' into jord/liquidation

f95b620

Conflicts: cadence/contracts/FlowCreditMarket.cdc

fix dex/oravle inequality assertion

095e24c

fix inconsistent calculation of implied collateral price

05dbf8b

rm extraneous comments

16b6e8d

fix true balance calculation to account for direction

0e0f783

make dex input optional (so contract compiles, for now)

18bfffa

update dependencies

96a5731

run flow deps install FlowTransactionScheduler per https://flow-foundation.slack.com/archives/C08QF29F7TK/p1765918094418619?thread_ts=1765904362.928639&cid=C08QF29F7TK to fix imports

remove LiquidationResult

4dab0e7

remove old liquidation logic methods

35be7ef

remove protocol fee

9f8d070

remove liqudiation quote, update docs

6178e58

This was referenced Jan 8, 2026

Implement basic DEX interface SwapperProvider #94

Open

Address logic duplication related to health factor calculation and BalanceSheet construction #96

Closed

jordanschalm added 9 commits January 8, 2026 13:18

update mock dex swapper to support SwapperProvider

b03dfad

add tx for manual liquidation

cd7c2e3

at this commit, failing on assert(initialHealth >= 1.0, message: "Cannot liquidate healthy position: \(initialHealth)>1")

fix health assertion

af33646

now we are failing on missing dex handle, as expected

minimal working test

2c690ed

add tests

f5c77c8

add collateral overage test

d01c659

check specific error messages

9cc5038

add test stubs

f440c14

clarify credit/debit rate fields

87ddbc2

jordanschalm and others added 5 commits January 9, 2026 10:38

re-add unused field (upgradability)

c9c3545

remove existing dex test

d5d5518

remove quote liquidation tx

0fdb73c

remove provisional dex (to be added in separate issue)

f194d1a

Merge branch 'main' into jord/liquidation

376610a

jordanschalm marked this pull request as ready for review January 9, 2026 18:58

jordanschalm requested a review from a team as a code owner January 9, 2026 18:58

jordanschalm changed the title ~~[DRAFT] Implement manual liquidation path~~ Implement manual liquidation path Jan 9, 2026

jordanschalm and others added 5 commits January 12, 2026 15:30

add tx+test for vault mismatch test

c3bf506

Merge branch 'jord/liquidation' of github.com:onflow/FlowCreditMarket…

8a9b523

… into jord/liquidation

add tests

8e751cc

fix unsupported collateral type test

908b705

Merge branch 'main' into jord/liquidation

daa3e52

jordanschalm requested review from Gornutz and liobrasil and removed request for dete January 13, 2026 17:37

jordanschalm added 2 commits January 13, 2026 15:23

improve "supported, not in position" tests

6947c89

remove unneeded logs

1b34a81

jordanschalm mentioned this pull request Jan 16, 2026

Integrate DEX into manual liquidation #112

Draft

6 tasks

jordanschalm commented Jan 20, 2026

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Update cadence/contracts/FlowCreditMarket.cdc

dc77506

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Implement manual liquidation path #77

Implement manual liquidation path #77

jordanschalm commented Dec 17, 2025 •

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jordanschalm commented Dec 17, 2025 • edited Loading Uh oh! There was an error while loading. Please reload this page.

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Description

Notes for reviewers

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jordanschalm commented Dec 17, 2025 •

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