🔍 DeFi｜On-chain Liquidations
· Definition: Using Aave as an example, when a borrowing position’s health factor falls below 1, any address can act as a liquidator and liquidate the position.
· Why it matters: When many positions use the same token as collateral, a sharp drop can trigger cascading liquidations. The collateral seized is then sold, driving prices down further.
· Note: You can set health factor alerts using a wallet tool—don’t wait until a liquidation happens to find out.
$COMP 23（-3.48%）
#COMP
· Definition: Using Aave as an example, when a borrowing position’s health factor falls below 1, any address can act as a liquidator and liquidate the position.
· Why it matters: When many positions use the same token as collateral, a sharp drop can trigger cascading liquidations. The collateral seized is then sold, driving prices down further.
· Note: You can set health factor alerts using a wallet tool—don’t wait until a liquidation happens to find out.
$COMP 23（-3.48%）
#COMP