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The riskiest troves are redeemed from; however, as opposed to the liquidation case, the borrower in this case does not lose all her SOL. For example, if she has 120% SOL collateral, the most she loses is 100% of the value of her debt, leaving 20% in the worst case scenario. SOL is paid to the redeemer, and the burned stable-token basically pays-off the loan (or at least part of it).
The text was updated successfully, but these errors were encountered:
The riskiest troves are redeemed from; however, as opposed to the liquidation case, the borrower in this case does not lose all her SOL. For example, if she has 120% SOL collateral, the most she loses is 100% of the value of her debt, leaving 20% in the worst case scenario. SOL is paid to the redeemer, and the burned stable-token basically pays-off the loan (or at least part of it).
The text was updated successfully, but these errors were encountered: