RUJI Liquidations

This guide covers integrating RUJI Liquidations (bidding on at-risk collateral) into your application, and guidance to build a Liquidation Solver.

RUJI Liquidations is a public marketplace for acquiring collateral from at-risk borrowing positions. Unlike traditional DeFi liquidations that favor MEV bots, all liquidated collateral on Rujira is sold via market orders on RUJI Trade orderbook DEX, and anyone can bid to catch the wicks by placing Tracking Orders at a discount to market price.

Market price is defined by THORChain enshrined oracle. To bid on at-risk collateral, users must place tracking orders at a fixed discount to oracle price, the order then rest in the orderbook like a limit order with the limit price updating every block as the oracle price changes. When a liquidation occurs via a market order, it pushes the price below the oracle price and fills the tracking orders from the lowest discount to the highest discount.

Two Integration Paths

There are two ways to participate in RUJI Liquidations:

Path 1: Bid on Liquidated Collateral (for end users)

Allow users to place tracking orders on RUJI Trade at a discount to oracle price. When liquidations occur and your order gets filled, you acquire collateral at your specified discount.

Best for:

• Users who want to accumulate assets at discounted prices

• Passive participation without running infrastructure

• DCA strategies during market volatility

Bidding Integration Guide

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Path 2: Build a Liquidation Solver (for developers)

Build off-chain infrastructure that monitors at-risk positions, calculates optimal liquidation routes, and executes liquidations to earn the 0.5% executor fee.

Best for:

• Developers building trading infrastructure

• Teams with quantitative/algorithmic capabilities

Solver Integration Guide

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How Liquidations Work

When a Credit Account's loan-to-value (LTV) ratio exceeds its liquidation threshold, the position becomes liquidable:

┌─────────────────────────────────────────┐
│         Credit Account                  │
│  Collateral: 1 BTC ($40,000)            │
│  Debt: 32,000 USDC                      │
│  LTV: 80% (Safe)                        │
└─────────────────────────────────────────┘
                    │
                    │  BTC price drops
                    ▼
┌─────────────────────────────────────────┐
│         Credit Account                  │
│  Collateral: 1 BTC ($30,000)            │
│  Debt: 32,000 USDC                      │
│  LTV: 107% (Liquidatable)               │
└─────────────────────────────────────────┘
                    │
                    │  Liquidation triggered
                    ▼
┌─────────────────────────────────────────┐
│  1. Solver executes liquidation         │
│  2. Collateral swapped via RUJI Trade   │
│  3. Bidders' orders filled at discount  │
│  4. Debt repaid to lending pool         │
│  5. Solver earns 0.5% fee               │
└─────────────────────────────────────────┘

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Fee Structure

Fee	Rate	Recipient
Liquidation Fee	1% of repaid debt	50% Protocol, 50% THORChain
Solver Fee	0.5% of repaid debt	Liquidation executor

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Contract Addresses

Contract	Address
Ghost Credit	thor1ekkt8wfls055t7f7yznj07j0s4mtndkq546swutzv2de7sfcxptq27duyt
RUJI Trade (BTC/USDC)	thor1dwsnlqw3lfhamc5dz3r57hlsppx3a2n2d7kppccxfdhfazjh06rs5077sz
RUJI Trade (ETH/USDC)	thor1tnd06uswj8033d0kzd5d7zre73u3uc44r2vvez26z5m4kr68vtusf2snva

Note: For the full list of RUJI Trade pairs, check https://rujira.network/developer/deployment and look for rujira-fin.