Who actually carries out on-chain liquidations, and how do liquidators make money?
Most liquidations are carried out by off-chain bots: they constantly monitor on-chain positions and submit liquidation transactions as soon as a health factor drops below 1.
Lending protocols determine a position’s status based on oracle prices. For example, Aave primarily uses price data from Chainlink.
Don’t laugh—I only remembered this after learning the hard way myself.
Only invest what you can afford, and leave yourself a way out.
$COMP 20.22 (-5.07%)
Most liquidations are carried out by off-chain bots: they constantly monitor on-chain positions and submit liquidation transactions as soon as a health factor drops below 1.
Lending protocols determine a position’s status based on oracle prices. For example, Aave primarily uses price data from Chainlink.
Don’t laugh—I only remembered this after learning the hard way myself.
Only invest what you can afford, and leave yourself a way out.
$COMP 20.22 (-5.07%)