402Course · Practitioner
Lending and Borrowing
On-chain credit markets.
On-chain credit markets. Over-collateralization, utilization curves, and the liquidation engine that keeps the protocol solvent.
- 01
Read an Aave position.
- 02
Explain over-collateralization.
- 03
Model a liquidation.
Prerequisites
- — DEXs and AMMs.
Pacing
~3 hours.
- IModule
The protocol
Aave and Compound, in detail.
A Note from the Faculty
A liquidation cascade is where every lending protocol is really tested.