How to stay protected from redemption risk in Liquity

Underneath is an example of two tools available on DeFi Saver that can help in mitigating redemption risk:

Notify feature

As a first step, users can set up a Debt-in-front monitor, receive notifications when the Debt-in-front of their position falls below the threshold amount, and (manually) manage their position accordingly. More details about Notify available in the General segment of our Knowledge Base.

Redemption Protection automation strategy

Users wishing their position to be automatically adjusted based on the Debt-in-front threshold can utilize a DFS automated strategy called "Redemption Protection". The strategy automatically would repay the position to increase the ratio by a configured percentage increase (e.g. +20%).

We can also recommend utilising our stats dashboard for Liquity https://liquity.defiexplore.com where you can preview all of the active Troves currently and also sort them by Ratio/Collateral/Debt.

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Related Articles:

• Liquity

• Dashboard & Use-case

• What is a Trove?

• Liquity Redemptions

• How do Liquidations work in Liquity?