From d056ad4be305bcf367255a0c2e7e2413f6367e88 Mon Sep 17 00:00:00 2001
From: "dr. mia von steinkirch, phd"
 <1130416+mvonsteinkirch@users.noreply.github.com>
Date: Tue, 7 Feb 2023 13:12:55 -0800
Subject: [PATCH] Update README.md

---
 liquidations/README.md | 37 ++++++++++---------------------------
 1 file changed, 10 insertions(+), 27 deletions(-)

diff --git a/liquidations/README.md b/liquidations/README.md
index 07d0c60..2e3be9b 100644
--- a/liquidations/README.md
+++ b/liquidations/README.md
@@ -1,31 +1,14 @@
-## 🧀 liquidations
+## liquidations
 
 <br>
 
 ### tl, dr
 
-* Lending protocol (e.g. Aave or Maker) liquidations present a well-known MEV opportunity.
-
-* They work by requiring users to deposit some collateral. Users can then borrow different assets and toekns 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 protcol allows anyone to liquidate the collateral (similar to margin calls in traditional finance).
-
-* If liquidated, the borrower usually has to pay a hefty liquidation fee, some of which goes to the liquidator (where the MEV opportunity comes in).
-
-* 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.
-
-<br>
-
-### strategy 1
-
-* A detects a liquidation opportuniy at block B (after the execution of B). Then, A issues a liquidation transaction T, which is expected to be mined in the next block, B+1.
-* A attempts to destructively front-run other competing liquidators by setting high transactions fees for their liquidation transaction T.
-
-<br>
-
-### strategy 2
-
-* A observes a transaction T, which will create a liquidation opportunity (e.g., an oracle price update transaction which will render a collaterized debit liquidatable). A then back-runs T with a liquidation transaction Ti to avoid the transation fee bidding competition.
+* lending protocol (e.g. aave or maker) liquidations present a well-known MEV opportunity. they 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 protcol 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.
+* example of strategy: bot detects a liquidation opportuniy at a block and issues a liquidation tx, which is expected to be include 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 which will create a liquidation opportunity (e.g., an oracle price update tx rendering a collaterized debit to be liquidated), then backruns this tx with a liquidation tx to avoid the fee bidding competition.
 
 
 <br>
@@ -34,7 +17,7 @@
 
 ## resources
 
-* [liquidations by aave protocol](https://docs.aave.com/developers/guides/liquidations)
-* [liquidation dashboard by eigenphi](https://eigenphi.io/mev/ethereum/liquidation)
-* [understanding compound's liquidation](https://zengo.com/understanding-compounds-liquidation/)
-* [forbes on nahtan worsley's liquidation strategies](https://www.forbes.com/sites/jeffkauflin/2022/10/11/the-secretive-world-of-mev-where-crypto-bots-scalp-investors-for-big-profits/?sh=25489eda2d8d) 
+* [liquidations, by aave protocol](https://docs.aave.com/developers/guides/liquidations)
+* [liquidation dashboard, by eigenphi](https://eigenphi.io/mev/ethereum/liquidation)
+* [understanding compound's liquidation, by zengo](https://zengo.com/understanding-compounds-liquidation/)
+* [nahtan worsley's liquidation strategies, by forbes](https://www.forbes.com/sites/jeffkauflin/2022/10/11/the-secretive-world-of-mev-where-crypto-bots-scalp-investors-for-big-profits/?sh=25489eda2d8d)