Collateral Auctions

Collateral auctions are meant to sell collateral that was seized from a vault in exchange for OD. The OD that is received by an auction is burned.

Increasing Discount

In order to incentivize bidding, collaterals are sold at a discount in comparison with the market price. The discount increases with time, until the discount deadline timestamp, where discount will reach a maximum value.

Settlement

Collateral auctions don't have a deadline, they will remain open until either all collateral was sold, or all required OD was raised, in which case the auction will be closed and the remaining collateral will be returned to the Vault owner.