Liquidations & Price Oracles

To reproduce the same liquidation conditions as the lending pool for its users, Morpho will copy onchain all the different risk parameters.

Price Oracles

Morpho's prices are the same as those used by the lending pools that Morpho plugs into. If the price changes for the lending pool, the exact change happens simultaneously for Morpho.

Liquidations

Morpho has its own independent liquidators that directly scan the book of users. Morpho mirrors onchain all the collateral ratios and close factors of the lending pools. This way, assuming Morpho has liquidators operating, the liquidation guarantees for users are the same as for lending pool users.

Please refer to the MorphoV1 Optimizer Contracts documentation to become a liquidator or for more technical details concerning liquidation: calculation of balances, health factors, and liquidation parameters.