Who Typically Participates in the Liquidation Auctions?

The participants in liquidation auctions are typically automated bots, known as 'Keepers' or liquidators. These entities are incentivized by the protocol to monitor the blockchain for under-collateralized debt positions.

When a position is flagged for liquidation, the Keeper bots compete to purchase the collateral at a discount, paying the debt to the protocol. This automated and competitive process ensures that liquidations happen quickly and efficiently to protect the system's solvency.