Knowledge Notes | On-Chain Liquidations
① Lending protocols assess positions based on prices provided by oracles. For example, Aave primarily uses price data from Chainlink.
② Taking Aave as an example, once a position’s health factor falls below 1, any address can act as a liquidator and initiate liquidation.
③ The more volatile the collateral, the higher the health factor should be kept, so there’s enough time to respond when prices suddenly plunge.
$COMP 20.35（-0.88%）
#COMP
① Lending protocols assess positions based on prices provided by oracles. For example, Aave primarily uses price data from Chainlink.
② Taking Aave as an example, once a position’s health factor falls below 1, any address can act as a liquidator and initiate liquidation.
③ The more volatile the collateral, the higher the health factor should be kept, so there’s enough time to respond when prices suddenly plunge.
$COMP 20.35（-0.88%）
#COMP
