The Ultimate Intro to Borrowing, Bidding, and Liquidating


When our IDO went live on in early November, a review from Yield Labs caught our attention. It was easy to follow without dumbing anything down. We checked out a few of their other videos and show host Tobi has a great way of making the most complicated ideas digestible.

Intrigued, we got in touch and after some really great conversations, asked them to create a series explaining liquidations; right from the process of borrowing to the bigger implications of using a democratized bidding system. We believe growing the number of people using Anchor to borrow and ORCA to liquidate is a key component to the growth and stability of the Terra ecosystem, and understanding all the steps involved is necessary.

With the help of the Yield Labs team, we’re pretty sure anyone can get a firm grasp on the whole process in under 30 minutes.

Tobi does a great job of breaking down everything, and the playlist1 contains 4 videos, each tackling one aspect. Here’s an overview of each.

Table of contents

Your ultimate guide to ORCA bidding

Part 1: borrowing

Before getting into liquidating, it’s important to understand how people can borrow in the first place. We touched on this very briefly in some of our other posts, but Tobi goes into greater detail. He goes through the mechanics of minting bLUNA and borrowing against it.

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Part 2: liquidations

Part 2 explores the liquidation part of the process; the different parties involved, why it happens and how it’s triggered. It goes on to unpack ORCA’s role as a UI, and bidders’ function in purchasing liquidated assets.

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Part 3: the full suite

Part 3 dives into our full suite of dApps and how they integrate to give utility to our native token $KUJI, including placing bids and using the liquidations analytics dashboard. ORCA may be our flagship product but she’s not the only whale in the pod!

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Part 4: the bigger picture

In his conclusion, Tobi talks about the potential this change to liquidations unlocks; how it can stabilise an ecosystem by decentralising decision making, soften volatility, reduce the pain felt by liquidated borrowers and even make borrowing less risky. This last piece is guaranteed to get you thinking.

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We hope these videos help you improve your understanding of liquidations and the changes ORCA is bringing to this part of the DeFi world, and if you know someone who has questions you’re struggling to answer, we hope this series helps.

Whalecome to ORCA liquidations
  1. Yield labs have privated their playlist videos about ORCA bidding as its mechanics have changed since the launch of the Kujira blockchain network. This article mainly exists in order to give our community a clearer picture of our historical continuity. ↩︎