DeFi lending risk model, explained:
Collateral ratio ✓
Interest rate model ✓
Liquidation parameters ✓
The liquidation bot reaching the position before it goes insolvent…🤞
If the bot loses the block race, the position closes too late. The protocol absorbs the bad debt. Not the borrower. Not the bot.
Realtime Ethereum removes the race entirely. Liquidations trigger the instant a position breaches — no bots, no delay, no bad debt.⚡
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