Liquidation Interface Implementation

[JosueBrenes]

Description

Implement a comprehensive liquidation management interface to handle at-risk positions when health factors drop below safe thresholds. This critical feature will help maintain protocol stability and provide opportunities for liquidators.

What to Implement

• Liquidation detection and monitoring system
• Liquidation modal with detailed position information
• Health factor monitoring component
• Liquidation transaction execution interface
• Liquidation rewards calculation

Acceptance Criteria

• Display positions at risk (health factor < 1.1)
• Show liquidation penalties and potential rewards
• Execute liquidation transactions via Blend SDK
• Real-time health factor updates
• Liquidation history tracking
• Protection mechanisms for partial liquidations

Technical Requirements

Files to Create

1. Liquidation Modal

   • Path: src/components/modules/marketplace/ui/components/LiquidationModal.tsx
   • Purpose: Interface for executing liquidations

2. Liquidation Hook

   • Path: src/components/modules/marketplace/hooks/useLiquidation.hook.ts
   • Purpose: Handle liquidation logic and state

3. Liquidation Helper

   • Path: src/helpers/liquidation.helper.ts
   • Purpose: Liquidation calculations and utilities

4. Health Factor Monitor

   • Path: src/components/modules/marketplace/ui/components/HealthFactorMonitor.tsx
   • Purpose: Real-time health factor display

Implementation Details

• Integrate with Blend Protocol liquidation functions
• Calculate liquidation bonuses and penalties
• Implement partial vs full liquidation logic
• Add real-time position monitoring
• Create liquidation opportunity scanner

Key Features

• Risk Assessment: Visual indicators for position risk levels
• Liquidation Calculator: Show potential profits/losses
• Position Details: Comprehensive view of liquidatable positions
• Transaction Simulation: Preview liquidation outcomes
• Batch Liquidations: Handle multiple positions efficiently

Design Considerations

• Clear risk indicators (red/yellow/green status)
• Detailed breakdown of liquidation calculations
• Confirmation dialogs for liquidation actions
• Real-time updates of position status
• Mobile-responsive design

Dependencies

• @blend-capital/blend-sdk liquidation functions
• Real-time price oracle integration
• Health factor calculation engine
• Existing wallet and notification systems

Definition of Done

• Liquidation detection works accurately
• UI clearly shows risk levels and calculations
• Liquidation transactions execute successfully
• Proper error handling and edge cases covered
• Performance optimized for real-time monitoring
• Comprehensive testing on testnet