Hey UX Community,
The crypto space is a new and promising world full of amazing growth potential. It is also full of risk, and in a lot of cases, unprecedented market volatility. To help cushion UX users from this present hazard, our talented team of developers worked tirelessly to develop our new Flash Liquidation feature.
In this post, we'd like to explain to you how it works, but first, let's look at what liquidation is, in general.
Cryptocurrencies are inherently high-risk investments, with some tokens exhibiting drastic swings in prices over time. This volatility can be attractive to traders, but it comes with the risk of liquidation, which is the forcible closure of a user's leveraged position by an exchange when the price of the asset they hold drops to a certain point.
Of course, nobody wants their position to be liquidated, which is why we put work into flash liquidation, to help UX users keep track of their positions in the ever-changing market landscape. But it's so much more than a way to watch the market. Let's explain.
Users can keep track of "liquidation targets" on our app dashboard. Here, they can monitor the health of various assets, and note when some of them are close to being liquidated. In this way, they can plan their strategies around avoiding the risk of liquidation for their leveraged positions or liquidating those undercollateralized positions.
With the flash liquidation feature, #UX users can choose to liquidate other users' positions themselves. They will use their own tokens to repay the debt of a position, thereby turning bad positions into good ones while earning the liquidation rewards.
Liquidating a position in general is a complex process that, in many cases, requires the person to have a technical understanding of coding to execute. But it's different with the UX Chain's flash liquidation feature. It's a never-before-seen implementation that allows a user to instantly liquidate a position in just a few clicks. Anyone can become a liquidator on UX!
We're happy to be able to bring the power of Flash Liquidation to the everyday UX user. Our commitment remains the same as always: to do everything in our power to make the DeFi experience for our users as safe and as low-risk as possible.
We look forward to seeing what brilliant new approaches to leveraging positions this feature will inspire.
The UX Team.