diff --git a/MEV_and_trading/lending/README.md b/MEV_and_trading/lending/README.md index ead9adf..eaeadda 100644 --- a/MEV_and_trading/lending/README.md +++ b/MEV_and_trading/lending/README.md @@ -8,6 +8,7 @@ * alice and bob deposit funds into a lending contract (e.g., aave, maker, compound). while bob leaves his original collateral locked in the protocol, he can withdraw ~50% or more (depending on the protocol and asset) at some algorithmic rate that gets paid to alice (for providing the funds). * bob can then create a short position, reinvest for a levered long position, or withdraw money (without selling the underlying and being taxed). alice, on the other hand, generates a return on her capital. +* liquidation is paid to the address that flags loans that crossed collateralization threshold (anyone monitoring the mempool and external oracles).