Diagrams

Figure 1: Depicts the relationship between the ALA user, the aggregated network of liquidation (Open Auction Pool), and their interaction with the smart contract management system (Controller Contract) and the DeFi Protocol where the liquidation events occur. The ALA user's activities are limited to deposits (inflows) and claims/withdrawals (outflows). The Controller Contract functions as the system manager, creating and managing liquidation pools, overseeing the state of liquidations, and directing collateral flow across the specific DeFi protocol and its associated ALA liquidation pools.

Figure 2: Depicts the overall logic flow of the ALA implementation. Once a liquidation event is authenticated by the Controller Contract, the system proceeds with liquidations by performing a balance check and moving sequentially through pools with available liquidity. This process depends on the specific network and associated DeFi protocol, following the principle of liquidating smaller pools first before progressing to larger ones. This approach ensures an efficient liquidation process and prevents cascading effects.

Figure 3: Depicts the relationship and process flow across all smart contracts, from the DeFi protocols contracts to the ALA controller contract managing the liquidation process. This diagram also illustrates the collateral flow across the liquidation pools to the designated DeFi protocol in the liquidation state.

Figure 4: Depicts cross-chain liquidation across AVAX and SOL pools for the Baki.exchange Protocol

Figure 5: Depicts cross-chain liquidation across different networks while upholding the ALA liquidation mechanism.