DeFi Liquidation

Priority liquidation execution with optimized gas bidding and real-time protocol monitoring

Daily Volume $1.8M
Success Rate 87.3%
Avg Execution 8ms
Active Bots 18

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

Aave V3
Active
TVL: $8.2B Liquidation Reward: 5-10% Active Positions: 45,230
Compound III
Active
TVL: $3.1B Liquidation Reward: 4-8% Active Positions: 12,847
MakerDAO
Active
TVL: $6.7B Liquidation Penalty: 13% Active CDPs: 8,921
dYdX V4
Active
TVL: $847M Liquidation Reward: 5% Active Positions: 3,247

Market Analysis

Daily Liquidation Volume

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Average of $1.8M in daily liquidation rewards captured

Protocol Distribution

Aave V3: 42%
Compound III: 28%
MakerDAO: 23%
Others: 7%

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

Strategy Performance

Total Rewards (30d) $2.47M
Avg Profit per Liquidation $847
Success Rate 87.3%
Avg Gas Cost 0.12 ETH

Live Opportunities

Aave V3 +$1,247
Position: 45.2 ETH Health: 1.02 Time: 180ms
Compound +$892
Position: 12.8 WBTC Health: 1.05 Time: 240ms

Bot Configuration

gwei
USD
USD

Technical Implementation

Liquidation Detection System

Protocol Monitoring
Health Calculation
Profit Analysis
Priority Execution

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

Chart placeholder
Total Rewards: $2,847,293
Total Executions: 3,247
Avg Time to Execution: 180ms

Protocol Comparison

Aave V3
94% success
Compound
89% success
MakerDAO
78% success

Ready to Start Liquidation Trading?

Deploy your liquidation bot and start capturing rewards from undercollateralized positions across major lending protocols.