How can an on-chain loan be liquidated?
Lending protocols assess positions based on prices provided by oracles. For example, Aave primarily uses price data from Chainlink.
Taking Aave as an example, when a borrower's health factor falls below 1, anyone can act as a liquidator and initiate a liquidation.
The most important thing to remember when managing your position: use wallet tools to set health factor alerts—don't wait until you're liquidated to find out.
$COMP 23.19（-7.65%）
#COMP
Lending protocols assess positions based on prices provided by oracles. For example, Aave primarily uses price data from Chainlink.
Taking Aave as an example, when a borrower's health factor falls below 1, anyone can act as a liquidator and initiate a liquidation.
The most important thing to remember when managing your position: use wallet tools to set health factor alerts—don't wait until you're liquidated to find out.
$COMP 23.19（-7.65%）
#COMP