🕵️‍♂️ Keepers

They enforce protocol integrity by managing risk, and executing automated safeguards across lending and FX modules. Keepers power two crucial mechanisms in the protocol, the liquidation mechanism and the Stabilization Mechanism.

Stabilization Mechanism

The Stabilization Mechanism monitors deviations between oracle referenced prices and AMM FX rates. When price discrepancy exceeds defined tolerances, keepers take the stage to capitalize on arbitrage incentives therefore trigger rebalancing flow of the FX pool via the Facilitators. This ensures fair pricing by keeping the margins thin as the FX AMM tightly tracks the real-world currencies.

Liquidation Mechanism

The Liquidation mechanism monitors all active loan positions and collateral ratios in real time. When a borrower's loan position is open to liquidation due to FX rate shifts or market volatility, keeper bots step in to liquidate the position and in turn are incentivized for the protocol maintenance. After deducting the full debt & reserve fee from the liquidated collateral, what is left is the liquidation bonus and it serves as a reward for that particular keeper.

This mechanism ensures keepers are competing to maintain systemic solvency as well as protect lenders from under-collateralized risk.