In this article, I will answer this question from Flipside Crypto:


  1. Method and queries
  2. Charts and analysis
  3. Extra stuff because I'm curious

Method and queries

My approach to this question is I will calculate the liquidator's net profit. According to AAVE's documents:

Gross profit per liquidation = 50% * borrower's debt * liquidation bonus (4%-12.5%) Net profit = Gross profit - gas fee Net profit > 0 ⇒ Gross profit - gas fee > 0 ⇒ 50% * borrower's debt * liquidation bonus > gas fee ⇒ borrower's debt > 2 * gas fee / liquidation bonus (4%-12.5%)

Replace the liquidation bonus with the upper limit and lower limit, we will get the minimum debt needed to cover the gas fee.

⇒ The safe zone is [0 - minimum borrower's debt]

For query:

I will use Kakamora's query to calculate the C-ratio from AAVE.

To calculate the gas fee, I will get the average gas fee from all transactions in aave.liquidations table.

Charts and analysis

First, I will use the C-ratio table, select only <1000$ position with 200% > debt ratio > 75% to find out whether those positions exist



Combining the above table with an external website to check health factor: