Liquidation margins are low for some Aave loans backed by yield-bearing collateral.

According to a LlamaRisk snapshot from October 9, the top $PT-AUSD suppliers on Monad all have debt, while two syrupUSDC positions on Arc account for about 97% of the market’s total supply combined. If this collateral needs to be liquidated urgently, it can only be sold at market price or queued for withdrawal on Ethereum, a process that could take several hours.

#DeFi #Aave (Source: X)

⚠️Risk warning: The above is shared for informational purposes only and does not constitute investment advice. Investing involves risk; please exercise caution.