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.