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in this video well take a look at how to call liquidate on compound first of all what is liquidation on compound when you borrow more than what you supply then you are subject to liquidation this means that someone else can repay a portion of the token that you borrowed and in return that person receives the token that you supplied at a discount to create a situation where the borrowed amount is greater than the amount that was supplied in this example were going to supply a token and then borrow up to the max and then were going to wait a few blocks and let the balance of the borrow token increase greater than the amount that was supplied times the collateral factor after we create a situation where we are under collaterized meaning we borrowed more than supply times the collateral factor well call liquidate this will be called from another contract finally well check that the contract that called liquidate was rewarded with portion of the token that was supplied below ive crea