Let’s talk about on-chain liquidations:
Using Aave as an example, when a position’s health factor falls below 1, anyone can act as a liquidator and liquidate it.
When many positions use the same coin as collateral, a sharp drop can trigger cascading liquidations. The collateral from liquidated positions is sold off all at once, amplifying the drop.
$COMP 19.97（-1.53%）
#COMP
Don’t treat these as buy or sell signals.
Using Aave as an example, when a position’s health factor falls below 1, anyone can act as a liquidator and liquidate it.
When many positions use the same coin as collateral, a sharp drop can trigger cascading liquidations. The collateral from liquidated positions is sold off all at once, amplifying the drop.
$COMP 19.97（-1.53%）
#COMP
Don’t treat these as buy or sell signals.