diff --git a/MEV_strategies/liquidations/euler.md b/MEV_strategies/liquidations/euler.md new file mode 100644 index 0000000..3eb97d2 --- /dev/null +++ b/MEV_strategies/liquidations/euler.md @@ -0,0 +1,24 @@ +## euler + +
+ +### tl; dr + +
+ +* protocols with larger amounts of bad debt usually suffer oracle attacks (e.g. mango markets). euler tries to improve existing liquidation mechanism to prevent bad debt. +* euler presents optimizations on liquidations through debt tokens (dTokens) and suply tokens (eTokens), and offering sliding and muliplying discounts to liquidators (dutch auction) +* it calculates health scores using risk-adjusted metrics for collateralized assets, by adjusting them against their market value to a more conservative risk-adjusted one. +* once a user healthy's score has flagged for liquidation, anyone can transfer dTokens and eTokens to their own account, buying both their collateral and debit. +* **soft liquidation**: only enough collateral and debt are transferred under liquidation to return to a healthy score. +* mev resistance comes from the multipliers euler offers to liquidators with deposits in their account. + +
+ +---- + +### resources + +
+ +* [inovative liquidation, by euler](https://www.euler.finance/blog/eulers-innovative-liquidation-engine)