# LLAMMA Liquidation Volume

**Overview**

This indicator provides a clear overview of the health of a market by highlighting the net volume of soft liquidations that occurred during a given time period. Since this indicator takes into account any rehypothecations of collateral if prices increase, it provides an insight into the true amount of soft liquidations that have occurred. Tracking total volume liquidated in soft liquidations is a strong pre-indicator of larger hard liquidations to follow.

**How can I use it?**

<figure><img src="https://lh7-us.googleusercontent.com/CyHf5UTrlk3LTljiD3tTjWg8GoxVzH_ijl8pE1JJN9YG18oM1INyLyg-Tokxx0aXE-DUvEuE7lS1P3pEpWmRG1hEgjCCvsxRk9mkcBud5iKL84qLR-HU5WoggXjKvRLJxfpqMrI8opDgquiTaw1wx1o" alt=""><figcaption></figcaption></figure>

In the example chart above for WBTC, large spikes in the total soft liquidation volume occur generally a few days before hard liquidations happen. The size of the spike often correlates with the size of the liquidations that will follow.

For users with collateral debt positions of crvUSD or for LPs in AMMS, this means that monitoring this chart for a specific collateral market or at the protocol level can provide you with potential early warning signals of increased volatility in collateral prices, crvUSD supply, and borrowing rates. This can give users enough time to make adjustments to their positions to avoid economic impact.


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