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Aaveator.
Jan 29, 2023
Expert Q&A

How the borrower debt token's was burned without the borrower signature?

If an liquidator is repaying the debt of the borrower at that time how the borrower debt token's was burned without the borrower signature? As for I know if we try to perform the move/burn an token of the wallet the wallet authority needs to sign for that transaction right? Can you please explain if I'm understand something wrong here. Thanks

  • Aave Protocol
  • Aave liquidation
  • Borrow rate
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Aaveator.
Feb 2 2023, 17:19

Debt tokens are not like normal erc20 tokens. They don't have any approve or transfer methods. They are minted and burnt by the pool so when debt is cleared (either by borrower or liquidator), pool burns the tokens https://github.com/aave/aave-v3-core/blob/e46341caf815edc268893f4f9398035f242375d9/contracts/protocol/tokenization/VariableDebtToken.sol#L122

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