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How Does a Decentralized Exchange (DEX) Handle Liquidation Rewards?

In a DEX, liquidation is often executed by external 'liquidators' or 'keepers' who are incentivized by a liquidation reward. This reward, typically a percentage of the liquidated collateral, is paid to the external party for executing the transaction and is designed to ensure liquidations are performed quickly and efficiently, even during network congestion.

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