ZeroLend automatically liquidates undercollateralized loans to maintain the stability of the protocol. When a loan falls below the Liquidation Threshold, the collateral is sold off to repay part of the outstanding loan balance.
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ZeroLend automatically liquidates undercollateralized loans to maintain the stability of the protocol. When a loan falls below the Liquidation Threshold, the collateral is sold off to repay part of the outstanding loan balance.