Talking about on-chain liquidations:
Taking Aave as an example, when a borrow position’s health factor falls below 1, anyone can act as a liquidator and initiate liquidation.
Liquidator rewards are intended to incentivize third-party liquidators to promptly liquidate risky positions and prevent the protocol from accumulating bad debt.
$COMP 18.04（-6.33%）
#COMP
Taking Aave as an example, when a borrow position’s health factor falls below 1, anyone can act as a liquidator and initiate liquidation.
Liquidator rewards are intended to incentivize third-party liquidators to promptly liquidate risky positions and prevent the protocol from accumulating bad debt.
$COMP 18.04（-6.33%）
#COMP