Knowledge Notes | On-Chain Liquidation
① In Compound V3, liquidation happens in two steps: the protocol first takes over accounts that meet the liquidation criteria, then sells their collateral to buyers at a discount.
② Liquidators repay part of a borrower’s debt and take collateral worth slightly more than the debt repaid; the excess is called the liquidation reward.
③ Repaying your debt or adding collateral proactively generally costs less than waiting to be liquidated, since liquidation comes with an additional penalty.
$COMP 20.42（-0.54%）
#COMP
Personal notes; not financial advice or a recommendation to buy or sell.
① In Compound V3, liquidation happens in two steps: the protocol first takes over accounts that meet the liquidation criteria, then sells their collateral to buyers at a discount.
② Liquidators repay part of a borrower’s debt and take collateral worth slightly more than the debt repaid; the excess is called the liquidation reward.
③ Repaying your debt or adding collateral proactively generally costs less than waiting to be liquidated, since liquidation comes with an additional penalty.
$COMP 20.42（-0.54%）
#COMP
Personal notes; not financial advice or a recommendation to buy or sell.
