DeFi Liquidation
Priority liquidation execution with optimized gas bidding and real-time protocol monitoring
How Liquidation Works
Our DeFi Liquidation strategy monitors lending protocols in real-time to identify undercollateralized positions. When a position becomes liquidatable, our system automatically executes the liquidation with priority gas bidding to ensure first-mover advantage.
Position Monitoring
Continuous scanning of 8+ lending protocols (Aave, Compound, MakerDAO) for health factor changes and potential liquidations.
Profit Calculation
Real-time calculation of liquidation rewards, gas costs, and potential profit to prioritize the most profitable opportunities.
Priority Execution
High-priority gas bidding and private mempool submission to ensure first execution of liquidations.
Asset Management
Automated collateral management and immediate exit strategies to minimize market exposure and lockup time.
Supported Lending Protocols
Market Analysis
Daily Liquidation Volume
Average of $1.8M in daily liquidation rewards captured
Protocol Distribution
Risk Management
Execution Risks
- Priority Competition: Multiple bots competing for same liquidation
- Gas Costs: High gas prices during market volatility
- MEV Protection: Need private mempool to avoid front-running
Market Risks
- Price Volatility: Asset prices moving during execution
- Liquidity: Insufficient liquidity for immediate exit
- Protocol Risk: Smart contract vulnerabilities
Our Risk Mitigations
Dynamic Gas Bidding
AI-powered gas price optimization based on competition level and profit margin
Private Mempool
Flashbots integration to prevent MEV attacks and ensure fair execution
Real-time Monitoring
24/7 monitoring of protocol health and automatic emergency stops
Technical Implementation
Liquidation Detection System
Smart Contract Integration
// Liquidation Executor Contract
contract LiquidationExecutor {
// Monitor Aave V3 positions
function monitorAavePosition(
address user
) external {
(
, ,
address collateral,
address debt,
uint256 collateralAmount,
uint256 borrowedAmount,
,
uint64 healthFactor,
,
) = IAaveV3(aavePool).getUserAccountData(user);
// Check if position is liquidatable
if (healthFactor < HEALTH_FACTOR_LIQUIDATION_THRESHOLD) {
uint256 maxLiquidation = calculateMaxLiquidation(collateral, debt, healthFactor);
executeLiquidation(user, collateral, debt, maxLiquidation);
}
}
// Execute liquidation with priority
function executeLiquidation(
address user,
address collateral,
address debt,
uint256 amount
) internal {
// Submit to Flashbots for MEV protection
flashbots.submitBundle(
buildBundle(user, collateral, debt, amount),
FlashbotsPriority.GAS_PRICE_200_GWEI
);
}
}
Performance Analytics
30-Day Performance
Protocol Comparison
Ready to Start Liquidation Trading?
Deploy your liquidation bot and start capturing rewards from undercollateralized positions across major lending protocols.