Does the pool contract is automatically liquidate the borrower debt?
- Aave Protocol
- Aave liquidation Aave
Expert
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?
- The pool contract is automatically liquidate the borrower debt? or
- It will wait until the liquidator came to repays the debt of borrower?
Answers 1
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.