To remedy these issues, Euler uses a different approach. Rather than a fixed discount percentage, we allow the discount to rise as a function of how under-water a position is. This turns a one-shot opportunity, where liquidators have no option but to engage in a PGA, into a type of Dutch auction. As the discount slowly increases, each would-be liquidator must decide whether or not to bid for a liquidation at the current discount on offer. Liquidator A might be profitable at 4%, but liquidator B might run a more efficient operation and be able to jump in sooner at 3.5%. The Dutch auction is aided by the TWAP oracles used on Euler, because a shock to the price does not bring with it a singular point at which every liquidator becomes profitable all at once. Instead the price moves more smoothly over time leading to a continuum of opportunities to liquidate, which further helps to limit PGAs. Overall, this process should help to drive the discount price towards the marginal operating cost of liquidating a borrower.