Liquidation
The forced sale of collateral assets by a lending protocol when a borrower's collateral value falls below the required minimum.
Frequently Asked Questions: Liquidation
What is Liquidation?
The forced sale of collateral assets by a lending protocol when a borrower's collateral value falls below the required minimum.
Why is Liquidation important in cryptocurrency?
Liquidation is a key concept in the cryptocurrency and blockchain ecosystem. Understanding Liquidation helps investors, developers, and users navigate the digital asset space more effectively.