# Dutch Auctions

If the staking pool designated for liquidating runs out of GARD, or for whatever reason doesn’t have enough GARD to successfully liquidate a position, then the liquidated position will be auctioned off. This auction process is a Dutch Auction system similar to that of MakerDAO that will sell the collateral through the Auctions page of the protocol for GARD, ensuring there is always enough collateral locked in the system for the GARD in circulation because the discount on the collateral will facilitate an arbitrage opportunity for the right user.

<figure><img src="/files/66UmjrkGxP7RP1MDVTDz" alt=""><figcaption></figcaption></figure>


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