Liquidation Ckt Brkr

Circuit Breaker Token is a wrapped token implementation that introduces a progressive time-delayed liquidation mechanism to protect users from instant liquidations in DeFi lending protocols. By enforcing a mandatory cooldown period followed by a gradual liquidation window, users gain time to react and potentially save their positions, while still ensuring that legitimately unhealthy positions can eventually be liquidated.

The implementation is generic and can wrap any ERC20 token - examples include cWBTC (wrapped WBTC), cUSDC (wrapped USDC), cDAI (wrapped DAI), etc. The "c" prefix stands for "circuit breaker."

Key Features

• Progressive Liquidation Curve: Liquidatable amount increases from 10% to 100% over the execution window
• Wallet Balance Consideration: Users with available tokens can get additional time (reduced liquidation percentage)
• Collateral-Aware: Takes into account the user's total collateral position
• Two-Phase System: Initiation (with cooldown) → Progressive execution window

It is implemented as a 1-to-1 wrapper token for any Collateral asset that can be supplied to ANY Lending and other DeFi protocols. The Transfer function is tightly controlled in order to tame the liquidation and give a chance to the holder to re-collateralize or de-leverage. Yet, it makes sure it does not damage the liquidation flow in absence of mitigating action. The contracts are written in Solidity and there is a simple demo front-end written in JavaScript.