GLOSSARY
Liquidations (in DeFi context)
In DeFi, liquidations occur when the collateral used for a loan no longer covers the value of the debt, triggering automatic repayment mechanisms. DeFi users, protocol developers, and MEV searchers commonly use this term. To excel in working with liquidations, one should understand DeFi lending protocols, be proficient in monitoring and predicting liquidation events, and know how to implement efficient liquidation bots.
