Sentora said that about $1.63 billion in liquidations across Ethereum lending platforms over the past year were settled through atomic paths, accounting for 89% of the total. The firm said atomic liquidations depend on decentralized exchange liquidity and are executed within a single on-chain transaction, where collateral is sold and debt is repaid in one step. Common methods include flash loans, prefunding with proprietary capital, or direct contract calls. Sentora added that real-world asset, or RWA, collateral may push more liquidations away from this model. According to the firm, thinner liquidity pools and whitelist-based transfer restrictions make RWA positions harder to unwind instantly on DEXs. As a result, liquidation flow may shift toward off-chain market makers, request-for-quote, or RFQ, systems, and solver-based routes. In those cases, compliant off-chain market makers may take the collateral through quoted trades, with solvers handling the position before the final closeout is completed.
Sentora said on Oct. 18 that roughly $1.63 billion in liquidations across Ethereum lending platforms over the past year were settled through atomic paths, representing 89% of the total.
The firm said atomic liquidations rely on decentralized exchange, or DEX, liquidity. In an atomic path, collateral liquidation and debt repayment are completed within the same on-chain transaction. Common approaches include flash loans, prefunding with proprietary capital, or direct contract calls.
Sentora said RWA collateral with thin liquidity pools and whitelist-based transfer restrictions is likely to push more liquidation activity toward off-chain market makers, request-for-quote, or RFQ, systems, and solver routes.
By contrast, RWA positions are often difficult to clear instantly on DEXs. In those cases, liquidation may increasingly be handled by compliant off-chain market makers through quoted trades, with solvers taking over the collateral before the position is closed out.
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