Docs/Getting started/Lending liquidation markets

Lending liquidation markets

Resolve YES if one authenticated Aave V3 account or isolated Morpho Blue position becomes liquidatable before its deadline.

Aave V3 account liquidation#

One market observes the complete Aave V3 position of one account.

The verified implementation is constructed with Aave's authenticated PoolAddressesProvider. Every read follows that provider to the current Pool, calls getUserAccountData(account), and returns YES only when the account has nonzero debt and Aave reports a health factor strictly below 1e18.

Aave YES boundarysolidity
YES = totalDebtBase > 0 && healthFactor < 1e18

Morpho Blue position liquidation#

One market observes one borrower inside one exact immutable Morpho market.

Creation begins with a 32-byte Morpho market ID. The interface reads and verifies its full parameter tuple: loan token, collateral token, oracle, interest-rate model, and LLTV. Those values and the borrower are stored in the state clone; initialization re-derives the market ID and rejects an unregistered market.

Morpho YES boundaryplaintext
accruedBorrowAssets = expected debt after current interest accrual
collateralValue = floor(collateral × oraclePrice / 1e36)
maximumBorrow = floor(collateralValue × LLTV / 1e18)

YES = maximumBorrow < accruedBorrowAssets

Borrow shares are converted to assets with Morpho's virtual-share constants and upward rounding. Expected interest uses the same three-term compounded approximation as Morpho Blue before the solvency comparison. Equality remains solvent and returns NO.

Timing and settlement#

Liquidation markets use Before deadline only.

1

Select position

Enter the Aave account, or the Morpho market ID and borrower.

2

Authenticate

The interface verifies the protocol, market, tokens, and current position onchain.

3

Set deadline

YES may settle only while the position is actually liquidatable before this UTC timestamp.

4

Expire

If liquidation eligibility was never resolved before the deadline, anyone can expire the market to NO.

Security boundaries#

  • A lending resolver can read only protocol state on its own chain. Cross-chain RPC or API data is never used during settlement.
  • The Aave template authenticates the Pool through its configured PoolAddressesProvider and deliberately follows official Pool upgrades.
  • The Morpho template is bound to one Morpho deployment and one complete immutable market tuple; callers cannot substitute a different oracle or LLTV after creation.
  • Protocol upgrades, governance, oracle behavior, interest-rate models, token behavior, and the protocols' own accounting remain explicit external trust boundaries.
  • A reverted or malformed external read is a resolver failure; it does not silently become YES or NO.
Experimental Phase onRobinhood Chain