How to Avoid Aave Liquidation on Polygon
Liquidation is preventable. Here are the strategies you can use to protect your Aave position.
Maintain a Healthy Buffer
Keep your health factor above 1.5 during normal conditions. This gives you room to absorb price drops without entering the danger zone. If ETH drops 20%, a position with HF of 1.5 might drop to around 1.2, still safe. A position at HF of 1.1 would be at 0.88 — liquidatable.
Monitor Your Position
Check your health factor daily, especially during volatile markets. Use Guardian Rescue's free checker (no wallet needed) or the Aave interface. Set a personal alert level — for example, if HF drops below 1.3, take action.
Add Collateral Early
The simplest fix is adding more collateral. Depositing additional assets into Aave increases your HF instantly. Do this before you enter the danger zone — waiting until HF is below 1.05 may be too late if prices move fast.
Authorize a Rescue as Backup
Sign a Guardian Rescue authorization when your HF is between 1.05 and 1.15. If prices drop further and you can't add collateral, the rescue can execute automatically. The signature is free (gasless) and expires in 1 hour if not needed.