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DeFi Day 25: Liquidations Ever wondered what happens when someone borrows too much in DeFi? Hereβs the simple flow: β’ You deposit collateral β’ You borrow against it β’ The market moves against you β’ Your collateral value falls β’ Your health factor drops β’ A
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AI visual note: Educational infographic titled 'DeFi CLASS DAY 25: LIQUIDATIONS' explaining how liquidations work in DeFi through a 6-step flow involving collateral deposit, borrowing, market drops, health factor, liquidator, and protocol rewards, with an example showing $1,000 ETH deposit and $600 USDC borrow.