Liquidations

Beam is a much cheaper smart contract platform than Ethereum, so $10 worth of stablecoin is enough to compensate a liquidation initiator. There is no need to charge an additional 0.5% liquidation fee.

Strict order

A more significant improvement is that Nephrite allows liquidations only in strict order — from the weakest trove to the strongest one.

This guarantees that liquidators will not cherry-pick only the most lucrative troves and leave smaller, weaker troves un-liquidated.

Reward summary

• 10 NPH flat reward to the liquidator.
• No percentage-of-debt component.
• Liquidations must proceed weakest-first.