🛡️Managing Liquidations

Understanding Defaults

In the Lends ecosystem, defaults are not the end of the world—they're a feature, not a bug.

For Borrowers

  • Choice, Not Punishment: Defaulting is a strategic option, not a forced event.

For Lenders

  • Collateral Acquisition: Receive defaulted collateral (minus a small fee).

  • Strategic Asset Accumulation: Use defaults to acquire desired assets at predetermined rates.

💡 Tip: Lenders can use Lends as a sophisticated limit order system for acquiring assets.


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