Why can DeFi lending collateral suddenly get liquidated even when nobody has called in the loan?
Take Aave, for example: when a position’s health factor falls below 1, any address can act as a liquidator and liquidate it.
You can use a wallet monitoring tool to set health factor alerts—don’t wait until you’ve been liquidated to find out.
$COMP is the governance token of the lending protocol Compound.
Have you run into a similar pitfall? Share your experience to help others avoid it.
Take Aave, for example: when a position’s health factor falls below 1, any address can act as a liquidator and liquidate it.
You can use a wallet monitoring tool to set health factor alerts—don’t wait until you’ve been liquidated to find out.
$COMP is the governance token of the lending protocol Compound.
Have you run into a similar pitfall? Share your experience to help others avoid it.