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fix: don't mint kbtc in cancel_redeem for liquidated vault #1204

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merged 1 commit into from
Oct 18, 2023

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@sander2 sander2 commented Oct 17, 2023

On cancel_redeem we have two branches:

  • Retry: Vault loses 10% collateral
  • Reimburse: Vault loses 110% collateral, to get it back to 10% effective loss they get to have the equivalent of 100% in KBTC

Unfortunately this doesn't account for the case when the Vault is liquidated, which on reimburse would still send them the "to-be-burned" KBTC. However because the Vault is already liquidated there is insufficient collateral to back these tokens, they should be burned and the accounting on the liquidation vault should be updated to reflect the decreased issued tokens.

@sander2 sander2 force-pushed the fix/liquidated_cancel_redeem branch from 13cbc45 to 0c34fda Compare October 17, 2023 13:17
@sander2 sander2 force-pushed the fix/liquidated_cancel_redeem branch from 0c34fda to c55ba41 Compare October 18, 2023 07:23
@gregdhill gregdhill merged commit 7c5e3bc into master Oct 18, 2023
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@gregdhill gregdhill deleted the fix/liquidated_cancel_redeem branch October 18, 2023 08:46
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2 participants