Dog

Purpose

The Dog contract oversees the liquidation process. It monitors Vaults for undercollateralization and triggers auctions to sell collateral when necessary.

Key Responsibilities

• Tracks undercollateralized Vaults.

• Incentivizes keepers to liquidate risky positions.

Key Methods

• bark(ilk, urn, kpr) Initiates the liquidation process for a Vault (urn). Determines the amount of collateral to be auctioned and distributes liquidation rewards to keepers.

  hole: Maximum debt to liquidate per collateral type.

• digs(ilk, rad) Adjusts internal debt balances after liquidation is completed.

• file(what, ilk, data) Configures liquidation parameters, such as penalties and incentives.

  • Example Parameters:

    • chop: Liquidation penalty (e.g., 5% of the debt).

    • hole: Maximum debt to liquidate per collateral type.