Alpend has integrated Temple's trading system and order books into its early-access lending market on Canton, adding a venue for selling collateral during liquidations.
Borrowers on Alpend Market put up assets as security for their loans. If a loan no longer meets its collateral requirements, an approved liquidator can repay part of the debt in exchange for collateral.
Liquidators receive extra collateral to compensate them for the risk and costs involved. The protocol also limits how much debt can be liquidated in a single transaction.
Using Temple's order books for those sales is intended to narrow the gap between the expected price and the amount received. The aim is to recover more value during liquidations and help manage risk for users who supply funds to Alpend's lending pools.
