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Re:DeFi and the “digital asset” felony hidden in the infrast... by newacc9 on Thursday November 04, 2021 @04:50PM (#29112399)
Its all automated, so it depends on the contract, I assume if the USD value of ETH drops too much, the borrower gets margin called.
Re:DeFi and the “digital asset” felony hidden in the infrast... by the_optimist on Thursday November 04, 2021 @05:23PM (#29112706)
Can you reference a specific margin call mechanism?
Re:DeFi and the “digital asset” felony hidden in the infrast... by newacc9 on Thursday November 04, 2021 @05:36PM (#29112813)
I found this for Compound. The liquidation mechanism is in section 11.

https://zengo.com/understanding-compounds-liquidation/