Liquidation Batch
A liquidation batch groups undercollateralized positions so a protocol or operator can process them in an organized sequence.
Category
DeFi Liquidation Queues
These terms explain how lending protocols organize liquidation work, price stressed collateral, and absorb losses.
How to recognize this theme
Words for handling undercollateralized positions without giving trading advice.
In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.
Educational context
These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.
Collateral Margin Buffer
A collateral margin buffer is extra collateral above a minimum requirement that helps absorb price movement before liquidation.
Auction Discount
An auction discount is a reduction applied to collateral in a liquidation sale to attract buyers and clear risk.
Solvency Backstop
A solvency backstop is a fund, insurance pool, or other mechanism designed to absorb losses that collateral does not cover.