EVK Liquidation

Explain EVK liquidation mechanics for unhealthy ERC-4626 vaults.

Updated Jan 28, 2026
One-click install
npx skills add https://github.com/cyotee/euler-lending-skill --skill evk-liquidation
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: EVK Liquidation
Source: https://github.com/cyotee/euler-lending-skill/tree/main/.opencode/skills/euler-evk-liquidation
Command: npx skills add https://github.com/cyotee/euler-lending-skill --skill evk-liquidation

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

This skill clarifies and operationalizes the EVK liquidation process for unhealthy vaults, enabling safe assessment of health, discounts, and collateral seizures.

Core Features & Use Cases

  • Health checks determine when a vault becomes unhealthy and eligible for liquidation.
  • Liquidation discount calculation adjusts proceeds based on how far the vault is from the health threshold.
  • Execution flow uses EVC controlCollateral to seize collateral and reduce the violator's debt.

Quick Start

Request a liquidation scenario by providing a violator address, collateral vault address, repay amount, and minimum yield balance to receive.

Frequently Asked Questions about EVK Liquidation

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do smart contract liquidations work for unhealthy ERC-4626 vaults?

Smart contract liquidations for unhealthy ERC-4626 vaults trigger when health checks fail, applying a computed discount to collateral seized via EVC controlCollateral to reduce the violator's debt.

How is the liquidation discount calculated for collateral in EVC?

The liquidation discount is calculated based on how far the violator vault's health falls below the required threshold, adjusting the proceeds received from seizing collateral through EVC interactions.

How do I seize collateral from a violator vault using controlCollateral?

To seize collateral using controlCollateral, provide a violator address, collateral vault address, repay amount, and minimum yield balance to execute the debt reduction and collateral transfer.

What edge cases affect collateral seizure during EVK liquidation?

Edge cases affecting EVK liquidation include collateral balance caps and specific yield requirements that constrain the maximum collateral seizure and minimum yield balance received during the process.

When does an EVK vault become eligible for liquidation?

An EVK vault becomes eligible for liquidation when health checks determine it is unhealthy, meaning its collateral value has dropped below the required threshold to secure its debt.

Can I liquidate an unhealthy vault if the collateral balance exceeds balance caps?

Liquidating an unhealthy vault with collateral exceeding balance caps is restricted by edge case constraints, limiting the controlCollateral seizure to ensure yield requirements and protocol limits are respected.