validateLiquidationCall
Overview
Execution flow
validateLiquidationCall
A valid liquidationCall must fulfil the following criteria:
Status flags for both collateral and borrow asset must be ACTIVE and NOT PAUSED
L2 check
Ensure user's health factor < 1
Collateral check
check that liquidation threshold is non-zero
confirm that user is using the collateral:
isUsingAsCollateral
Since the liquidator can claim a single collateral of choice - we need to check the collateral address passed to ensure that it is indeed a valid selection. Else we might liquidate an asset that was not marked as collateral.
Liquidation threshold
is the percentage at which a loan is defined as under-collateralized.
usually no more than 10-15% above LTV.
For example, a liquidation threshold of 80% means that if the loan value rises above 80% of the collateral, the loan could be liquidated.
If the loan reaches the liquidation threshold, Aave prevents a user from borrowing and the user must either partially close their position or provide more collateral.
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