Borrower, Liquidation

A borrower provides collateral to borrow assets from a lender. The borrower is liable to pay regular interest fees to the lender (typically measured as a percentage of the loan).

Source: Kaihua Qin et al., “An Empirical Study of DeFi Liquidations: Incentives, Risks, and Instabilities,” Proceedings of the 21st ACM Internet Measurement Conference (November 2, 2021): 3, accessed May 2, 2022, http://arxiv.org/abs/2106.06389.