No one reminded me to repay—how did my collateral in a DeFi loan get liquidated so suddenly?
In Compound V3, liquidation happens in two steps: the protocol first absorbs accounts eligible for liquidation, then sells their collateral to buyers at a discount.
Take note: Repaying your loan or adding more collateral proactively is generally better than waiting to be liquidated, because liquidation comes with an additional penalty.
$COMP is the governance token of the lending protocol Compound. Current price: 20.21.
There’s no shame in taking it slow; staying alive matters more than making a big profit once.
#COMP
In Compound V3, liquidation happens in two steps: the protocol first absorbs accounts eligible for liquidation, then sells their collateral to buyers at a discount.
Take note: Repaying your loan or adding more collateral proactively is generally better than waiting to be liquidated, because liquidation comes with an additional penalty.
$COMP is the governance token of the lending protocol Compound. Current price: 20.21.
There’s no shame in taking it slow; staying alive matters more than making a big profit once.
#COMP
