Varistors are often used to protect circuits against excessive transient voltages by incorporating them into the circuit in such a way that, when triggered, they will shunt the current created by the high voltage away from the sensitive components.
A varistors function is to conduct significantly increased current when voltage is excessive.
A varistor fully degrades typically when its "clamping voltage" has changed by 10%.
Some energy is also absorbed by the varistor because a varistor is not a perfect conductor.
Catastrophic failure can be avoided by significantly increasing varistor energy ratings either by using a varistor of higher joules or by connecting more of these shunt mode devices in parallel.
Source: Wikipedia > Varistor
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