Proposal: Allow to sell debt

Right now you can sell your deposit via vTokens, but a well developed financial requires also the possibility to sell debt via special tokens, in order to facilitate accounts with big debts to get rid of debt and allow others with solvency to buy it with a discount on market (the profit for the buyer) and provide more liquidity to the system.

Notice this is equivalent to liquidation, but initiated by the own borrower in order to avoid heavy looses by the loan interest rates. If he waits for forced liquidation, he has to wait for bigger accumulated debt.

This will allow the borrower to put part or all his debt available for immediate liquidation for avoiding worse losses , and people eager to liquidate, to start to do that without need to wait for target account to reach health zero.

Update: this proposal has been superseded by this other one:

which is more general and specific, and has the same purpose (easing liquidity pressure)

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I agree that this would help in the long run, however this won’t change much to the current situation.
The 3 big USDC/T borrowers won’t get liquidated this time around - they have started repaying their loans, the borrow rate is now at 40% on their USDC/T loans and their leverage is gradually decreasing.

Is this possible?
Anyone who has debt could have their debt taken on by another user at any time, but also the equivalent value of supply would be taken.
Imagine a user is supplying 10,000 USDC.
The user could take 10,000 USDN from the whale’s supply and also 10,000 USDC of its debt.
Then the USDC supply and debt would be canceled out, leaving the user with the whale’s 10,000 USDN.
The reason to do this is that the USDN could be withdrawn right now, unlike the 100% utilized USDC.
Essentially it’s liquidating the whale right now but with 0% liquidation penalty.
Yes, if possible, it should be limited (done slowly) to prevent flooding the market with USDN. But it solves the problem.

Supplyer sell USDC/T Vtoken as 0.7USDN
Borrower repay USDC/T Vtoken as 1.25USDC/T

There is no dude who think that “this situation is decent”.

This proposal is necessary.

Debt token (Dtoken) price may be just a spread.
ex, 0.2% of Vtoken price + premium.