Blocks Elapsed to Complete Liquidations

Overview

This indicator shows the number of blocks it takes for a liquidation to take place, showing the USD amount and percentage of the liquidation paid per block.

The faster liquidations are done, the lower the risk of insolvency for the protocol as it avoids getting exposure to borrowers’ collateral assets.

How can I use it?

This indicator is useful to analyze the level of asset exposure that the protocol incurs when a liquidation opportunity arises. The more blocks the opportunity is open to liquidations, the greater the chances that collateral assets can go down in price and end up not being enough to repay debts.

Furthermore, by analyzing how long a liquidator takes advantage of the opportunity users can gain insight into their reliability. If liquidations are taking longer than a few blocks to be executed it would suggest that these are not profitable for liquidators for reasons such as low liquidity of the underlying asset.