Peer to peer lending backed by cryptos is prone to liquidations in batches.
We study the peer to peer lending backed by cryptos. There exist examples in crypto P2P lending that the collateral price goes to zero in a very short period of time. Serval factors cause this:
1. the collateral is very volatile
2. the liquidation is automatic
3. multiple contracts with the same health factor (Loan-to-Value ratio) exist and tend to be liquidated together.
Research Interest:
Work in Progress