About on-chain liquidations:
If collateral prices plunge and liquidation is not completed in time, the remaining collateral may be insufficient to repay the debt, leaving the protocol with bad debt.
If many positions use the same coin as collateral, a sharp drop can easily trigger cascading liquidations. Selling off the liquidated collateral all at once can amplify the price decline.
$COMP 20.04（-0.45%）
If collateral prices plunge and liquidation is not completed in time, the remaining collateral may be insufficient to repay the debt, leaving the protocol with bad debt.
If many positions use the same coin as collateral, a sharp drop can easily trigger cascading liquidations. Selling off the liquidated collateral all at once can amplify the price decline.
$COMP 20.04（-0.45%）
