#PowerPool community! 🧵👇 Introducing the Game-Changing Liquidation Protection Template Prototype for #PowerAgentv2! We've just launched the Liquidation Protection Template for #PowerAgent, a major leap forward in safeguarding #DeFi strategies against #liquidation risks. Dive into the details here: medium.com/powerpool/intr…
1/ What's at stake? In #DeFi, using #lending markets is popular but comes with the risk of #liquidation if your #collateral value drops too sharply. Our new template helps manage this risk smartly and automatically with #PowerAgentv2.
2/ Here’s how it works: Suppose you’ve borrowed funds with #ETH as #collateral. If $ETH's price drops close to a critical point, our #PowerAgentv2 can step in to adjust your collateral/#debt ratio by automatically repaying part of your debt, avoiding costly #liquidations.
3/ The heart of this system is the #Liquidation Protection #Contract, currently aligned with @aave protocols but adaptable for any #lending service. It monitors and adjusts your health factor between set bounds to keep your assets safe.