26. Biggest Liquidations

This dashboard looks at the biggest liquidations over the past year on the Aave platform. Aave allows for users to deposit and borrow at their discretion. A unique feature of Aave is that it allows for under-collateralized loans, in the form of flash loans, which can be used as long as the loan is payed back within one block. If the loan is not payed back within one block, the actions by the borrower are undone. If the borrowers collateral on a regular(not flash) loan ends up not properly covering the loan due to price changes, the borrower can be liquidated. This means that up to 50% of a borrower's debt is repaid and that value plus liquidation fee is taken from the collateral available, so after a liquidation that amount liquidated from the debt is repaid. The largest liquidation on Aave in 2021 so far was about $5,000,000. The next highest liquidations are not far behind, with almost all of them in the 4 million or high 3 million dollar range.