LIQ Protocol is a decentralized on-chain liquidation engine system powering derivatives markets on Serum and lending platforms on Solana. Serum is a Solana-based decentralized exchange (DEX) and ecosystem that brings unprecedented speed and low transaction costs to decentralized finance.
LIQ protocol manages liquidations and provides capital across several different derivatives and lending platforms. Liquidators profits are used to buy back $LIQ on the open market and redistributed back to $LIQ liquidity providers. A portion of the profits is also redistributed back to the insurance fund to keep up with continuous growth and expansion. To manage the risk of holding volatile assets in the liquidators required holdings, the liquidators assets are constantly hedged to keep a delta-neutral position.
