Analysis of liquidations

    This dashboard shows borrows and liquidations over time as well as liquidations as a percent of borrows broken down by asset. Liquidations generally represent a very small amount of the overall borrow value. There was a period of large liquidations on UNI, WBTC, and a few other tokens in early 2021. There is rarely ever more than 6% of any token supply that is liquidated on any given day, except for a few outlier days, which still never seem to exceed 30% of the overall borrow. Large percentages of the overall borrow supply do represent a very volatile lending market which has its risks. However, the larger risk is represented by the % of circulating token supply that these liquidations represent as the potential for illiquidity or impermanent market impact are the more significant concerns.