liquidate/burn collateral
Last updated
Last updated
If liquidator has opted to receive aTokens in payment (params.receiveAToken == true)
_liquidateATokens will be executed
Else: _burnCollatearlATokens will be executed
_liquidateATokens Transfers aTokens from the target user to the liquidator.
Amount transferred: debtRepaid + liquidation penalty (in collateral terms)
If the liquidator did not have aTokens of this kind previously,
validateUseAsCollateral
setUsingAsCollateral
validateUseAsCollateral ensures that liquidator is not in isolation mode and the incoming asset is not an isolation mode asset.
If these conditions are met, the reserve transferred to the liquidator is set to be used as collateral.
transferOnLiquidiation calls _transfer, which executes the transfer of aTokens.
validate is set to false, therefore finalizeTransfer is not executed
For explanations on validateUseAsCollateral and setUsingAsCollateral, please see the supply section on the following segments:
Where possible, Aave opts to set supplied assets as collateral automatically. The exception to this are isolated assets.
If the liquidator does not wish to receive ATokens, the alternative would be to transfer the underlying asset to them (instead of aDAI, transfer DAI).
To enact a transfer of the underlying asset, its corresponding aTokens must be "redeemed". Effectively, this means that liquidity is being removed from the system. This would therefore impact interest rates, and they have to be updated.
Hence, updateInterestRates is executed with parameters:
liquidityAdded = 0
liquidityRemoved = actualCollateralToLiquidate
Lastly, burn is executed.
_burnScaled: burn scaledAmount and update user balances
safeTransfer underlying asset from target user to liquidator
TO-DO:
does updateState need to be run again here?
nothing material would have changed between its inital execution to this point
confirm this.
