Advanced
Lending Protocols (Mechanics) — Check your understanding
Understand collateral, liquidation, and health factor.
Developer Advanced
8/8 — Lending Protocols (Mechanics) — Check your understanding
Defend itExplain your interest model, parameters, and liquidation math to a reviewer. Show where HF is computed and how you test it.
Edge casesStale oracles, zero liquidity, and rounding can create bad debt—know your guards.
Key points
- Walk through a liquidation:What changes, what events fire, how HF improves.
- Explain how you prevent:Borrows when the oracle is stale or paused.
- Show utilization/rate math and:How reserve factor affects suppliers.
- Describe closeFactor and liqBonus:Choices for volatile vs stable assets.
- Prove debt doesn’t underflow:On repay and that HF uses updated indexes.