Git-Mirrors/mev-toolkit
1
0
Fork 0
mirror of https://github.com/autistic-symposium/mev-toolkit.git synced 2025-04-28 11:46:13 -04:00
Code Issues Packages Projects Releases Wiki Activity

Update README.md

Browse Source
This commit is contained in:
dr. mia von steinkirch, phd 2023-02-07 16:46:52 -08:00 committed by GitHub
parent 5cf652dc6f
commit 9512f34b85
No known key found for this signature in database
GPG Key ID: 4AEE18F83AFDEB23
1 changed files with 7 additions and 5 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

12
liquidations/README.md
View File

@ -1,4 +1,4 @@
## liquidations ## liquidation
<br> <br>
@ -6,10 +6,10 @@
<br> <br>
* lending protocol work by requiring users to deposit some collateral. users can then borrow different assets and tokens from others depending on what they need, up to a certain amount of their deposited collateral. as the value of a borrower's collateral fluctuates, if the value of the borrowed assets exceeds the value of the collateral, the protocol allows anyone to liquidate the collateral (similar to margin calls in traditional finance). * **lending protocol** work by requiring users to deposit some collateral. users can then borrow different assets and tokens from others depending on what they need, up to a certain amount of their deposited collateral. as the value of a borrower's collateral fluctuates, if the value of the borrowed assets exceeds the value of the collateral, the protocol allows anyone to liquidate the collateral (similar to margin calls in traditional finance).
* searchers compete to parse blockchain data as fast as possible to determine which borrowers can be liquidated and be the first to submit a liquidation transaction and collect the liquidation fee. * **searchers compete** to parse blockchain data as fast as possible to determine which borrowers can be liquidated and be the first to submit a liquidation transaction and collect the liquidation fee.
* example of strategy: bot detects a liquidation opportunity at a block and issues a liquidation tx, which is expected to be included in the next block. to compete with other liquidators, the bot sets high tx fees for their liquidation tx. * **example of strategy**: bot detects a liquidation opportunity at a block and issues a liquidation tx, which is expected to be included in the next block. to compete with other liquidators, the bot sets high tx fees for their liquidation tx.
* another strategy: bot observes a tx that will create a liquidation opportunity (e.g., an oracle price update tx rendering a collateralized debit to be liquidated), then backruns this tx with a liquidation tx to avoid the fee bidding competition. * **another strategy**: bot observes a tx that will create a liquidation opportunity (e.g., an oracle price update tx rendering a collateralized debit to be liquidated), then backruns this tx with a liquidation tx to avoid the fee bidding competition.
<br> <br>
@ -28,6 +28,8 @@
## resources ## resources
<br>
* [anatomy of liquidator bots](https://github.com/go-outside-labs/mev-toolkit/blob/main/anatomy_of_mev_bots/bots/liquidators.md) * [anatomy of liquidator bots](https://github.com/go-outside-labs/mev-toolkit/blob/main/anatomy_of_mev_bots/bots/liquidators.md)
* [liquidation dashboard, by eigenphi](https://eigenphi.io/mev/ethereum/liquidation) * [liquidation dashboard, by eigenphi](https://eigenphi.io/mev/ethereum/liquidation)
* [understanding compound's liquidation, by zengo](https://zengo.com/understanding-compounds-liquidation/) * [understanding compound's liquidation, by zengo](https://zengo.com/understanding-compounds-liquidation/)