Emergency Shutdown is intended to be used as last resort to protect the system against serious security threats. The system is capable of partial shutdown loans for single collateral or a global shutdown. The shutdown is triggered via on-chain governance.
Step 1: Initiate Shutdown
Vaults that are related to the shutdown (e.g. the particular collateral being shutdown) are locked, no further update allowed
Vault owners can still withdraw any free collaterals that are not used
The protocol locks a target price for relevant collateral assets for liquidation
Step 2: Process Loans/Vaults
The system will automatically liquidate the loans, and payback the outstanding Acala Dollar borrowed
After the process is completed, a basket of collateral assets will be available for Acala Dollar holders to reclaim
Step 3: Reclaim Debt
The will be cleared of surplus and debt
Acala Dollar holders can burn Acala Dollar and reclaim equivalent value of collateral assets, which could be a mixture of assets available
emergencyShutdown.emergencyShutdown() extrinsic must be proposed and passed via on-chain governance before a shutdown is triggered.