RT @SwapSpaceCo: .@shardcoin is a global, #decentralized and open-source interoperable project accessible to anyone on #Ethereum and #BSC 💪…

Golden Nugget of the Day - Liquidations & Buying Discounted $LUNA Kujira’s ORCA allows you to participate in Anchor Protocol liquidations to purchase $bLuna at a discount. [https://orca.kujira.app/] First, what are Anchor liquidations? Anchor allows you to borrow $UST when you deposit $bLuna as collateral - up to 50%. For example, John deposits $100 worth of $bLuna, and is able to borrow up to 50 $UST. This is a Loan-to-Value (LTV) of 50%. However, if the price of $LUNA dips, this increases John’s LTV. If his LTV increases to 60%, Anchor automatically liquidates John’s collateral to the liquidation bidders in order to pay off his loan. This liquidation mechanism keeps Anchor solvent. So who can participate in bidding on liquidations? Kujira’s ORCA acts as the front end to Anchor’s liquidation queue. ORCA allows users to deposit $UST into different pools. These pools have different premiums. For example, David deposits $1000 $UST into the 4% premium pool. Let’s say a week later, $LUNA falls to $50 and Adam is liquidated. Assuming David’s bid is next in the queue, his bid automatically purchases Adam’s liquidated collateral at a 4% discount, which is $1000 worth of $bLuna at $48, or 20.83 $bLuna. Are you agree with this explanation?