How can on-chain loans get liquidated? Don’t panic—your class study rep is here:
The liquidator repays part of the borrower’s debt and takes collateral worth slightly more than the debt repaid. The extra amount is called the liquidation bonus.
Liquidations are generally carried out by off-chain bots: they constantly monitor on-chain positions and submit a liquidation transaction as soon as the health factor drops below 1.
The first page of my trading notes says: Understand it before you act.
$COMP 23.69（-5.81%）
#COMP
The liquidator repays part of the borrower’s debt and takes collateral worth slightly more than the debt repaid. The extra amount is called the liquidation bonus.
Liquidations are generally carried out by off-chain bots: they constantly monitor on-chain positions and submit a liquidation transaction as soon as the health factor drops below 1.
The first page of my trading notes says: Understand it before you act.
$COMP 23.69（-5.81%）
#COMP