Nitron: Update to Liquidation Process
Dear Demex Community,
Following feedback from Nitron users and community members, we want to provide an update to the previously scheduled resumption of liquidations on Nitron (3 July 2025).
The proposed change is meant to protect as many users as possible from further losses, especially those with larger positions.
Rather than resuming liquidations on on 3 July, the following process will be used instead.
💚 New Process & Timeline
- Right Now: nLEND Updates ⚙️
- nLEND oracle price has been temporarily hardcoded to $1.00, and its Loan-to-Value (LTV) and Liquidation Threshold has been adjusted to 0.0832 (0.0979 x 0.85) and 0.88 respectively. The resulting Health Factor given by nLEND should now be higher than on the upgrade date (and approximately the same as on the exploit date) for all users.
- Interest rate for all assets have been set to 0%.
- Users should now examine the current Nitron interface and evaluate if their position is still at risk of liquidation.
- Note that collateral can still only be withdrawn if the remaining
∑(LTV x Price)over each collaterized asset is greater than the total position debt value. - Regardless of the displayed Health Factor, we encourage all users to repay their Nitron debt where viable in order to reduce utilization. This will allow other users to exit their positions more easily.
- 3 July: On-chain Upgrade 🧰
- Users that had cGLP in their balance before the upgrade will have USD tokens airdropped at the rate of
1 cGLP = 1.1x GLP USD Price, which is approximately the conversion rate before the vault donation attack. Users with outstanding cGLP debt in Nitron will have their cGLP debt automatically repaid by the team. - Users with outstanding bNEO and ZIL debt, or are unable to withdraw these assets, should contact the team on Telegram for manual resolution.
- Users that had cGLP in their balance before the upgrade will have USD tokens airdropped at the rate of
- 10 July: First Liquidation Round 🧷
- We have delayed the previously scheduled date by 7 days.
- On 10 July, we will temporarily resume liquidation based on the above configuration.
- Users who are at risk of liquidations should top up their account before that date.
- As any changes would primarily be due to changes in asset prices unrelated to nLEND, liquidations done at this point should be deemed as fair. The team will then pay off any bad debt that remains after liquidations.
- Users with a position which they deem should not be liquidated should contact the team on Telegram before this date for manual liquidation protection. These accounts will be frozen until the position is viable to be unwound, on a case-by-case basis.
- After all positions are healthy, liquidation will be paused again.
- Borrow interest will resume at 40% of the current curve, in order to encourage repayment and reduction of utilization rate.
- nLEND's Liquidation Threshold will be adjusted to 0.12, while LTV and oracle price remains the same.
- 24 July: Second Liquidation Round ⚖️
- Users will have another 14 days to examine their position to check if they are at risk of liquidation. If so they should repay debt to increase Health Factor, or write-off the position in which case the team will liquidate and pay any bad debt.
- Users with a position that is unviable for write-off should contact the team on Telegram before this date for manual liquidation protection. These accounts will be frozen until the position is viable to be unwound, on a case-by-case basis. Interest will continue to accrue for these accounts for non-USC assets.
- On 24 July, liquidations will resume permanently. All bad debt will be cleared by the team after that.
💙 Our Commitment to Users
As we continue to work towards restoring value to you, we stand ready to assist any user with any issues or queries, and we remain steadfast in our commitment to protecting all users.
Please be assured that all feedback and concerns are heard and considered, even though fully thought-out solutions may take time to work out.
As such, we ask for your patience and kind language when engaging with our support team.
Thank you for your understanding as we navigate this challenging journey together.
Once again, please reach out to our support team on Telegram if you have any questions or feedback.
Sincerely,
Demex Team