Let's talk about on-chain liquidations:
The liquidator repays part of the borrower's debt and takes collateral worth slightly more than the debt repaid. The excess is called the liquidation reward.
Being liquidated generally doesn't mean all the collateral is wiped out: the borrower still keeps the assets they borrowed. What is taken is the portion of the collateral used to repay the debt, plus the liquidation penalty.
$COMP 23.98（-4.42%）
The liquidator repays part of the borrower's debt and takes collateral worth slightly more than the debt repaid. The excess is called the liquidation reward.
Being liquidated generally doesn't mean all the collateral is wiped out: the borrower still keeps the assets they borrowed. What is taken is the portion of the collateral used to repay the debt, plus the liquidation penalty.
$COMP 23.98（-4.42%）