Liquidate

Liquidation is an activity open to everyone and fully decentralized. In the guide below, you will learn how to liquidate a position whose health factor is below 1.

Liquidation consists of calling a function of the smart contract. Its goal is to repay the debt of a loan that exceeds the authorized limit relative to the value of its deposit (the collateral). By repaying all or part of a position’s debt, the liquidator can seize all or part of the collateral with a bonus (liquidation penalty).

1. Connect to liquidation.colend.xyz

2. The second part of the page lists all ongoing positions according to their health factor.

1. Copy and paste an address of the position that is liquidatable (health factor below 1)

1. Select the asset to seize and the one you want to repay.

2. Enter the amount you want to repay.

3. Approve and click Liquidate.

The seized funds are automatically transferred to your position, including the bonus.

To repay loans in WCORE, you first need to convert your CORE into WCORE. Here’s how:

1. Deposit your CORE tokens on Colend.

2. Withdraw the amount you need, making sure to uncheck the “unwrap” option so the tokens are withdrawn as WCORE.

1. Click on Withdraw WCORE