Cascading liquidation violates whitepaper #48
Description
Venus liquidated me 95% on 19th May 2021 in the few minutes of market flash crash (not talking about XVS dump prior to that) , while the white paper says 50%. I need the excess liquidated money back. I need this to be reasonably solved as proof that the protocol cares about its users and doesn't take unfair advantage.
Specific Issue:
I had 141.2749 BNB and 397.7783 XVS in my Venus deposit before the flash crash in markets on 19th May. At the crash time the Binance smart chain was stalled out and there was no chance given to do any form of repayment. I thought 50% liquidation risk is there as per the Venus white paper but then I saw my balance was turned into 13.1846 BNB and 12.3187 XVS in minutes !! That is more than 90% total liquidation and definitely and exploit in the system which unfairly benefits liquidator or Venus itself at the cost if the investor.
This is the liquidiation guide extract on Venus:
"How much do they liquidate us?
They liquidate us enough to pay our loan + 10% on that value that remains of profit for the liquidator.
Do they liquidate our entire guarantee?
No, the liquidator can pay up to a maximum of 50% of the value of the loan, paying us the corresponding value in our deposited currency plus its added 10%."
Othe protocols like Cream finance did not suffer any such serial cascading liquidation. Only Venus.
Please refund me the extra amount liquidated as per the rules and in fairness. I have lost extraordinary money due to this flaw! I am totally shocked and heartbroken and I had such high expectations but now I have faced an unfathomable and unfair loss. A person can claw back from 50% but not from 90%. Please help me and do justice I had great faith in CZ and Joselito and the bsc ecosystem as 'for the people', so this must be investigated.