Liquidation Mechanisms in DeFi : A Study of Aave, Morpho, and Euler馃挕
In the space of DeFi, lending protocols have emerged as game-changers, as they bring incredible features for the users. One of the fundamental structures they operate on is providing loans. The high demand for loans highlights the need for effective liquidation mechanisms as undercollateralized loans lead to bad debts for these protocols. In this blog, we鈥檒l explore the liquidation mechanisms of leading platforms鈥擜ave, Morpho, and Euler鈥攂y examining their approach, making comparisons, and analyzing their workings....