VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172

VIP-172 Add forced liquidations feature into the Core pool Summary If passed, this VIP will upgrade the implementation of the Comptroller contract of the Core pool, including the feature “forced liquidations” as suggested by Chaos Labs. Description This VIP upgrades the implementation of the Comptroller contract in the core pool, including the feature “forced liquidations”, that will be initially disabled for every market. If “forced liquidations” are enabled for a market, borrow positions can be liquidated in that market even when the health rate of the user is greater than 1 (i.e. when the account is collateralized). Additionally, the close factor check is ignored, allowing the liquidation of 100% of the debt in one transaction. This feature is based on the implementation done by Compound V2 here. Compound V2 allows “forced liquidations” on markets as soon as the Collateral factor is zero, the Reserve factor is 100% and the borrows are paused. Venus defines a feature flag to enable/disable “forced liquidations”, configurable directly via VIP, not based on other parameters. To check if “forced liquidations” are enabled in one market, the function _Comptroller.isForcedLiquidationEnabled(address vToken)_ can be called on the Comptroller contract of the pool, providing the address of the market to check. Finally, this VIP will authorize Normal, Fast-track and Critical timelocks to enable and disable the forced liquidations on any market of the Core pool. Security and additional considerations We applied the following security procedures for this upgrade: * Behavior post upgrade: in a simulation environment, validating “forced liquidations” work as expected after the upgrade * Deployment on testnet: the same implementation has been deployed to testnet, and used in the Venus Protocol testnet deployment * Audit: Certik and Peckshield have audited the deployed code Audit reports * Certik audit report (2023/09/16) * Peckshield audit report (2023/09/16) Deployed contracts * New Comptroller implementation - mainnet * New Comptroller implementation - testnet References * Pull request with the changeset Vote 👉🏻 https://app.venus.io/#/governance/proposal/172