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Aaveator.
Jan 29, 2023
Expert Q&A

Does the pool contract is automatically liquidate the borrower debt?

In liquidation process. if an borrower account is under Collateralize, then the borrower health factor bellow 1. that time there is no liquidator is try to repays the borrowers debt then what will happen? in the pool contract?

  1. The pool contract is automatically liquidate the borrower debt? or
  2. It will wait until the liquidator came to repays the debt of borrower?
  • Aave Protocol
  • Aave liquidation
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Aaveator.
Feb 2 2023, 17:18

There is not automatic liquidation. A liquidator must clear the debt and liquidate. Hence, Aave protocol has liquidation bonus to incentivise.

More info on Aave liquidation.

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