DeFi Lending and Liquidation

sequenceDiagram
  actor U as User
  participant P as Lending Pool Contract
  participant O as Price Oracle
  actor L as Liquidator Bot
  U->>P: Deposit 10 ETH collateral
  U->>P: Borrow 12,000 USDC
  P->>O: Get ETH price
  O-->>P: 2,500 USD
  P-->>U: 12,000 USDC sent
  Note over P,O: Later the ETH price falls
  L->>O: Read ETH price
  O-->>L: 1,500 USD
  L->>P: Check health factor
  P-->>L: 0.9, unsafe
  L->>P: Repay 6,000 USDC of the debt
  P-->>L: ETH collateral plus 5% bonus