No one called in the loan, so why was the collateral for an on-chain loan suddenly liquidated?
Being liquidated generally doesn’t mean all your collateral is wiped out: the borrower still keeps the assets they borrowed. What’s taken is the portion of collateral used to repay the debt, plus a liquidation penalty.
By default, Aave V3 allows a liquidator to repay at most half the debt in a single liquidation. If the health factor falls below 0.95, or the position’s collateral or debt is very small, the entire debt can be liquidated at once.
Knowledge may seem useless most of the time, but when trouble strikes, you’ll be glad you have it.
Don’t follow suit just because everyone else is doing it.
$COMP 22.86（-8.49%）
#COMP
Being liquidated generally doesn’t mean all your collateral is wiped out: the borrower still keeps the assets they borrowed. What’s taken is the portion of collateral used to repay the debt, plus a liquidation penalty.
By default, Aave V3 allows a liquidator to repay at most half the debt in a single liquidation. If the health factor falls below 0.95, or the position’s collateral or debt is very small, the entire debt can be liquidated at once.
Knowledge may seem useless most of the time, but when trouble strikes, you’ll be glad you have it.
Don’t follow suit just because everyone else is doing it.
$COMP 22.86（-8.49%）
#COMP