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Liquidation Bonus vs Penalty: Who Pays Whom in DeFi?

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Compound and Aave reward liquidators with a bonus, while MakerDAO charges borrowers a liquidation penalty. See who pays whom, how it works, and the trade-offs.

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Liquidation Bonus vs Penalty: Who Pays Whom in DeFi?

Crypto Daily 2h ago

Liquidation Bonus vs Penalty: Who Pays Whom in DeFi?

Compound and Aave reward liquidators with a bonus, while MakerDAO charges borrowers a liquidation penalty. See who pays whom, how it works, and the trade-offs.