I had to learn this the hard way too.
Lending protocols use oracle-provided prices to assess positions. For example, Aave primarily uses price data from Chainlink.
Liquidations are generally carried out by off-chain bots: they continuously monitor on-chain positions and submit a liquidation transaction as soon as the health factor drops below 1.
$COMP is the governance token of the lending protocol Compound.
Did you know about this already?
#COMP
Lending protocols use oracle-provided prices to assess positions. For example, Aave primarily uses price data from Chainlink.
Liquidations are generally carried out by off-chain bots: they continuously monitor on-chain positions and submit a liquidation transaction as soon as the health factor drops below 1.
$COMP is the governance token of the lending protocol Compound.
Did you know about this already?
#COMP