How Do Impermax Liquidators Ensure Repayment For Lenders?

Liquidations are an essential tool in maintaining the stability of any collateralized lending agreement. A borrower agrees that, if the value of their collateral falls below some predetermined level (relative to the value of their loan,) the lender can sell the underlying collateral to pay back the loan. The financial news media has actually covered this process extensively in the past week with the meltdown of Archegos Capital. This process is pretty well-defined in traditional finance, but how does it work for cutting edge DeFi protocols like Impermax?

Smart contracts ensure repayment to lenders if prices go down

Liquidation systems are well-proven with other permissionless lending protocols

Full liquidation protects the lender

Liquidation bots are preferable to manual liquidation since they work immediately

Liquidation is a key component of permissionless lending services

We're developing a DeFi ecosystem that will enable investors to leverage their LP Tokens