The Prime liquidation engine is designed with two things in mind – efficiency and simplicity.
Given the cross-chain nature of Prime Protocol, liquidations can become quite complex, with collateral potentially being stored on a separate chain than the corresponding borrow. Additionally, liquidations themselves are quite mathematically involved even when collateral and borrows exist on the same chain.
The liquidator would need to account for the liquidity incentive (amount the collateral is discounted for a liquidation) and protocol seize share (amount of the repaid borrow taken as profit for the protocol) as well as various constraints to determine how to properly execute a liquidation. Prime has created a solution to fully abstract these problems away for users: the liquidation dashboard.
This dynamic page is constantly scanning the blockchain for accounts on Prime with too low of a health factor that have become eligible for liquidation, and allows users to directly execute liquidations through the frontend of our app. For more savvy users these liquidations may be tweaked before submitting, and speedy devs can even tap directly into the liquidate function in our smart contracts. Additionally, the backend of the liquidation function includes safeguards that will fully refund a liquidator if they overpay for a liquidation whether it be due to a mere mistake or price latency.
With these features, Prime offers one of the most accessible liquidation engines in DeFi while also including safeguards to fully refund a liquidator if they overpay for a liquidation.