How can on-chain loans be liquidated? Many people can’t answer!
In Compound V3, liquidation happens in two steps: the protocol first absorbs accounts that meet the liquidation criteria, then sells their collateral to buyers at a discount.
Most liquidations are carried out by automated bots: they constantly monitor on-chain positions and submit liquidation transactions as soon as the health factor drops below 1.
Invest within your means, and leave yourself a buffer.
$COMP 22.95（-3.61%）
#COMP
In Compound V3, liquidation happens in two steps: the protocol first absorbs accounts that meet the liquidation criteria, then sells their collateral to buyers at a discount.
Most liquidations are carried out by automated bots: they constantly monitor on-chain positions and submit liquidation transactions as soon as the health factor drops below 1.
Invest within your means, and leave yourself a buffer.
$COMP 22.95（-3.61%）
#COMP