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Matvii Tulupov

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Open access Jul 2026

Collateral Liquidations under Order Book Dynamics: A Formal Model for Aave and Compound

We develop a rigorous framework for modeling collateral liquidations in decentralized lending protocols such as Aave and Compound. In contrast to earlier approaches based on constant-product market maker (CPM) assumptions, real-world liquidations are executed through order books with finite depth. This introduces price...

Matvii Tulupov · 0 citations

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