Opinion: Nearly 90% of Ethereum lending liquidations over the past year followed the atomic path, RWA may shift to off-chain liquidation

October 18 - Analysis firm Sentora stated in a post that of approximately $1.63 billion in liquidations on Ethereum lending platforms over the past year, 89% were settled through atomic paths. Atomic liquidations rely on DEX liquidity. RWA collateral with thinner liquidity pools and whitelist transfer restrictions will drive more liquidations toward off-chain market makers, RFQ, and solver paths.

The atomic path refers to completing collateral liquidation and debt repayment within the same on-chain transaction, commonly through flash loans, self-funded advances, or direct contract calls. In contrast, RWAs are often difficult to liquidate instantly on DEXs, and liquidations will increasingly be handled by compliant off-chain market makers who take on collateral through request-for-quote executions and solvers before completing the close-out.