The health of Augmented Finance protocol is dependant on the 'health' of the loans within the system, also known as the 'health factor'. When the 'health factor' of an account's total loans is below 1, anyone can make a liquidation to the LendingPool contract, paying back part of the debt owed and receiving discounted collateral in return (also known as the liquidation bonus).
This incentivizes third parties to participate in the health of the overall protocol, by acting in their own interest (to receive the discounted collateral) and as a result, ensuring loans are sufficiently collateralized.
Augmented Finance uses its own bot to liquidate undercollateralized positions. But this doesn't prevent any third-party bots to perform liquidations on Augmented Finance protocol. If you want more information on how to update your bot to perform liquidations on Augmented Finance, please text [email protected].
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