liquidate

liquidationCall()

Overview

This function is called by liquidators to liquidate "bad loans". Accounts with a health factor of less than 1 are eligible for liquidation.

Assuming user's healthFactor < 1:

• if healthFactor > 0.95 => close factor set to 50%

• if healthFactor <= 0.95 => close factor set to 100%

Liquidators are awarded with liquidation bonus, which can be paid in ATokens or the underlying asset as well.

• user’s health factor: $0.95 < hf < 1$, the loan is eligible for a liquidation of 50%.

• user’s health factor: $hf <= 0.95$, the loan is eligible for a liquidation of 100%.

• executeLiquidationCall contains the core logics

executeLiquidationCall

Execution flow

• cache + updateState + get health factor

• _caluclateDebt

• validateLiquidationCall

• getConfigurationData

• calculateAvailableCollateralToLiquidate

• setBorrowing

• setUsingAsCollateral

• _burnDebtTokens

• updateInterestRates

• updateIsolatedDebtIfIsolated

• liquidate/burn collateral

• liquidation fee

• Wrap-up

We will breakdown and examine the unique sections of logics within executeLiquidationCall. Code delineated in orange are common functions and can be explored in that section.

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