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LlamaRisk snapshot shows two positions hold 97% of syrupUSDC on Aave Arc with health factors just above liquidation threshold
LlamaRisk’s snapshot for 9 October identified that two positions controlled roughly 97 percent of the syrupUSDC supplied in Aave’s Arc market. Both positions showed health factors of 1.02 and 1.01, which sit just above the liquidation threshold of 1.0. A position becomes eligible for liquidation once its health factor falls below one. Liquidators must first provide cash and then recover that amount from the collateral. The exit process requires either local buyers or a bridge to Ethereum and Maple’s redemption queue. While most withdrawals complete in under 24 hours, the timeline can extend to as long as 30 days. Aave’s on‑chain USDC supply is distinct from the cash used to purchase or redeem syrupUSDC.