Who exactly carries out on-chain liquidations, and how do liquidators make money?
Liquidation rewards are offered to attract off-chain liquidators to liquidate risky positions as quickly as possible and prevent the protocol from accruing bad debt.
In Compound V3, liquidation happens in two steps: the protocol first takes over accounts that meet the liquidation criteria, then sells the collateral at a discount to buyers.
When I first got into crypto, I thought understanding candlestick charts was all I needed. Later, I realized that learning the rules is the real first lesson.
When you hear claims of stable, high returns, stay alert.
$COMP 17.84（-7.42%）
#COMP
Liquidation rewards are offered to attract off-chain liquidators to liquidate risky positions as quickly as possible and prevent the protocol from accruing bad debt.
In Compound V3, liquidation happens in two steps: the protocol first takes over accounts that meet the liquidation criteria, then sells the collateral at a discount to buyers.
When I first got into crypto, I thought understanding candlestick charts was all I needed. Later, I realized that learning the rules is the real first lesson.
When you hear claims of stable, high returns, stay alert.
$COMP 17.84（-7.42%）
#COMP
