Adrena
  • About Adrena
    • ๐Ÿ‘๏ธVision
    • ๐Ÿ’‰What is Adrena?
      • โœจNo Liquidation Fees
      • ๐Ÿซ—Peer-to-Pool Perp Model (and the risks as a Liquidity Provider)
      • ๐Ÿ‹๏ธTrading Competitions
        • 0๏ธโƒฃPre-Season: Awakening
        • 1๏ธโƒฃSeason 1: Expanse
      • ๐Ÿ’ฝRPC and Trade Execution
    • ๐Ÿง€Fees
      • ๐Ÿ’ฐRevenue Sharing
      • ๐ŸฏWays to Earn Overview
      • ๐Ÿ’ฑBuybacks
    • ๐Ÿ‘พTrader Profile
    • ๐Ÿ“–Achievements
    • ๐ŸงชMutagen (Points System)
    • ๐ŸคReferral System
    • Audits
    • Bug Bounty Program
    • ๐Ÿ”—Useful Links
  • Tokenomics
    • ๐ŸซฆTokenomics Overview
    • ๐Ÿช™ADX
      • ๐Ÿค‘Distribution
      • ๐Ÿ’ธEmissions
      • ๐Ÿ‘ฅForms of ADX
      • ๐ŸฆบVesting
      • ๐ŸšฐStaked ADX - Rewards Emissions Schedule
      • ๐Ÿ”Staking and Duration Locked Parameters for ADX
      • ๐Ÿ—ณ๏ธVoting
    • ๐Ÿ’ŽALP
      • ๐ŸŒŠGenesis Liquidity [terminated]
        • ๐Ÿ’ฆGenesis Liquidity Program [Terminated]
      • ๐ŸšฐStaked ALP - Rewards Emissions Schedule [Terminated]
      • ๐Ÿ”Staking and Locked Stake Parameters for ALP
  • Technical Documentation
    • ๐Ÿ‘คGovernance Shadow Token
    • ๐Ÿค–MrSablier & MrSablierStaking (Open Source Keepers)
    • ๐Ÿ”ฎOracles and Price Feeds
    • โ˜ข๏ธ"Toxic Flow" Countermeasures
    • ๐Ÿช–Position Parameters
    • โŒšSablier Automation Threads (deprecated)
    • ๐ŸฆStaking Implementation Details
    • Terms and Conditions
    • Token Terms and Conditions
  • Guides
    • ๐Ÿ’ปHow to Change to Devnet in Phantom Wallet
    • ๐Ÿ’งHow to get Devnet SOL
    • ๐Ÿ’ฐHow to Get Tokens to Trade
    • ๐Ÿ“ˆHow to Open and Close a Trade
  • Reports
    • 21/11/2024 - BE - Increase Position, position.price miscalculations
    • 22/10/2024 - Upgrade staking accounting issue causing extra reward distribution
    • 12/10/2024 - BE - Borrow fees reset on position increase
    • 01/10/2024 - BE - Custody internal state for `Assets` reports too much locked collateral
    • 27/09/2024 - BE - Missing accounts reload during fee distribution
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  1. About Adrena
  2. What is Adrena?

No Liquidation Fees

As discussed previously in Peer-to-Pool Perp Model (and the risks as a Liquidity Provider), liquidations are not as important as they are on order-book based DEXes.

Let's unravel the details and why we can have 0 additionnal fees for liquidations (the usual position closing fees is taken, as if you closed manually).


On Adrena, if you get into liquidation territory, we will simply close the position for you, taking the usual close position fee. That's all, no extras.

Seems weird? Well it's actually pretty logical.

Liquidation fees, accepted by most traders, exist because they are essential to incentivise timely decentralised liquidation on ORDER-BOOK based DEXes. Since these platforms are PvP, if liquidation don't happen when they should, someone must be paid with missing funds, accruing bad debt.

The high liquidation fee makes sense, it allow the platform the run smoothly and for everyone to be paid.

Now... On an asset backed perp DEX, it's PvE. Traders borrow funds from the LP to leverage their trade, they pay for this at open and close a % fee, and over time as long as the position is open. The optimal state for Liquidity providers is to have positions Open and Close as much as possible and to lend all of the available liquidities.

If a liquidation does not happen timely, worse case is loosing on the fees. It is not desirable, but it is not as detrimental for us as it is for order-book based DEXes.

As such, we think it's hardly justifiable to kick a dead body by adding a substantial extra liquidation fee to loosing traders.


See MrSablier & MrSablierStaking (Open Source Keepers)

PreviousWhat is Adrena?NextPeer-to-Pool Perp Model (and the risks as a Liquidity Provider)

Last updated 1 month ago

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