Who actually carries out liquidations, and how do liquidators make money?
If collateral prices plunge and liquidation isn't completed in time, the remaining collateral may not be enough to repay the debt, leaving the protocol with bad debt.
The more volatile the collateral, the higher the health factor should be kept so there's enough time to act when prices plunge.
$COMP is the governance token of the lending protocol Compound.
What topic would you like to learn about? Let me know in the comments.
If collateral prices plunge and liquidation isn't completed in time, the remaining collateral may not be enough to repay the debt, leaving the protocol with bad debt.
The more volatile the collateral, the higher the health factor should be kept so there's enough time to act when prices plunge.
$COMP is the governance token of the lending protocol Compound.
What topic would you like to learn about? Let me know in the comments.
