Liquidation Map
DeFi Risk Heatmap
See where over-leveraged positions are concentrated. These 'kill zones' are where massive liquidations will trigger if price moves.
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Understand DeFi Liquidations and Market Cascades
Liquidations occur in DeFi lending when collateral value falls below required thresholds. This tool helps you visualize liquidation levels, risk zones, and how clusters of liquidations can trigger rapid price movements.
What is a liquidation in DeFi?
In decentralized lending protocols, users borrow assets by locking collateral. If the value of that collateral drops below a protocol-defined safety ratio, the position is automatically liquidated to repay the outstanding debt and protect lenders.
Liquidation clusters & price impact
Liquidations often occur in clusters around specific price levels. When the market approaches these zones, forced selling can accelerate price declines, creating cascading effects that increase volatility and amplify market moves.