Description
Backstop is a liquidation primitive for DeFi lending platforms and their users. Its Backstop AMM (B.AMM) lets users deposit funds into backstop pools, whose liquidity smart contracts draw on to execute liquidations on integrated platforms. Seized collateral is automatically offered for sale; sale returns go back to the pool and profits accrue to liquidity providers. It is designed to reduce lending platforms’ dependence on third-party flashloan bot operators and DEX liquidity while helping communities clear risky positions and avoid bad debt.