Atomic Paths

Ethereum

2026-10-18 12:04:41

Sentora says 89% of Ethereum lending liquidations used atomic paths over the past year

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.

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Ethereum

2026-10-18 12:11:51

Sentora says 89% of Ethereum lending liquidations settled through atomic paths over the past year

Research firm Sentora said roughly $1.63 billion in liquidations on Ethereum lending platforms over the past year were processed largely through atomic paths, with 89% of the total settled that way. The firm said atomic liquidations depend on decentralized exchange liquidity and are typically completed within a single on-chain transaction, where collateral is sold and debt is repaid in one sequence. Common methods include flash loans, prefunded capital, or direct contract calls. Sentora also said the picture changes for real-world asset, or RWA, collateral. When liquidity pools are thin and transfers are subject to whitelist restrictions, that collateral is harder to unwind instantly on DEXs. In those cases, liquidation flow is likely to move more toward off-chain market makers, request-for-quote, or RFQ, systems, and solver-based routes, where compliant buyers can take the collateral before the position is closed.

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