Why can on-chain loans be liquidated? Don’t panic—your class study rep is here:
Lending protocols use prices provided by oracles to assess positions. For example, Aave mainly uses price data from Chainlink.
Liquidations are mostly carried out by automated bots: these programs continuously monitor on-chain positions and immediately send a liquidation transaction as soon as the health factor drops below 1.
Understanding this won’t make me instantly stronger, but it can help me avoid one silly mistake.
$COMP 25.23（-2.17%）
#COMP
Lending protocols use prices provided by oracles to assess positions. For example, Aave mainly uses price data from Chainlink.
Liquidations are mostly carried out by automated bots: these programs continuously monitor on-chain positions and immediately send a liquidation transaction as soon as the health factor drops below 1.
Understanding this won’t make me instantly stronger, but it can help me avoid one silly mistake.
$COMP 25.23（-2.17%）
#COMP