Aave · interactive mechanism simulation

Suppliers deposit into a shared pool and earn aTokens; borrowers post overcollateral and draw liquidity at a utilization-based rate. Flash loans arbitrage atomically. If a position's health factor drops below 1, anyone can liquidate it — and if collateral gets squeezed, the Safety Module absorbs bad debt.
Suppliers deposit assets Liquidity pool 45% utilization aToken interest 3.2% APY Borrowers 0.0 ETH borrowed Collateral market health factor 1.8 Liquidators 0 positions closed Safety Module 0.0 ETH staked backstop
Deposits simulated
0
Pool TVL
0.0 ETH
Interest paid
0.0 ETH
Bad debt slashed
0.0 ETH
Parameters — edit me
1.4/s
45%
65%
20%
Controls

Illustrative simulation. Mirrors the researched Aave mechanism (pooled liquidity, utilization-based rates, overcollateralized borrowing, permissionless liquidations, slashable Safety Module backstop) but flows and timing are randomized for visualization — not live onchain data. "Trigger the failure mode" replays a CRV-squeeze-style event: thin collateral gets manipulated, health factors crash, liquidators can't fully cover it, and the Safety Module gets slashed to absorb the shortfall. Part of The Onchain Experiment Atlas.