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MEV_strategies/liquidations/README.md

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+## liquidation
+
+<br>
+
+### tl, dr
+
+<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). 
+* **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.
+* **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>
+
+---
+
+### in this dir
+
+<br>
+
+* [flashloans](flashloans)
+* [compound](compound.md)
+* [liquity](liquity.md)
+* [aave](aave.md)
+
+<br>
+
+---
+
+## resources
+
+<br>
+
+* [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)
+* [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) 
+* [cycle of liquidations in the CRV pool](https://twitter.com/AaveAave/status/1595168982541209611)

MEV_strategies/liquidations/aave.md

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+## aave protocol
+
+<br>
+
+### tl; dr
+
+<br>
+
+* decentralized lending protocol that lets users lend or borrow crypto assets or real-world assets (RWAs) without going to a centralized intermediary.
+* users deposit digital assets into liquidity pools, which become funds so that the protocol can lend out.
+
+
+<br>
+
+### tl; dr aave v3
+
+<br>
+
+* **portal**: allows flow of liquidity between aave v3 markets across different networks (governance-approved bridges can burn atokens while minting them on the destination network)
+* **emode**: the high-efficiency mode allows borrowers to extract the highest borrowing power out of their collateral when supplied + borrowed assets are price-correlated (e.g. both are derivatives of the same underlying asset).
+* **isolation mode**: new assets can be listed as isolated so borrowers cannot supply other assets as collateral (but can capture yield) but only approved stablecoins.
+* **siloed borrowing** allows assets with risky manipulatable oracles to be listed as a single borrow asset.
+* **multiple rewards** per token.
+* **chains**: avalanche, pptimism, polygon, fantom, harmony and arbitrum.
+
+<br>
+
+
+---
+
+### resources
+
+<br>
+
+* [liquidations, by aave protocol](https://docs.aave.com/developers/guides/liquidations)
+* [aave v2 whitepaper](https://github.com/aave/protocol-v2/blob/master/aave-v2-whitepaper.pdf)
+* [aave v3 docs](https://docs.aave.com/developers/getting-started/readme)

MEV_strategies/liquidations/compound.md

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+## compound
+
+<br>
+
+### tl; dr
+
+<br>
+
+* decentralized protocol that establishes markets with algorithmically set interest rates, based on supply and demand, and allowing users to frictionlessly
+exchange the time value of crypto assets.
+
+<br>
+
+---
+
+### resources
+
+<br>
+
+
+* [compound docs](https://docs.compound.finance/)
+* [compound whitepaper](https://compound.finance/documents/Compound.Whitepaper.pdf)

MEV_strategies/liquidations/flashloans/README.md

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+
+## flashloans
+
+<br>
+
+### tl; dr
+
+<br>
+
+* flashloans allow the borrowing of any available amount of assets without any collateral, as long as the liquidity is returned to the protocol within one block tx.
+* flashloans can be requested through smart contracts that execute the steps to borrow nad pay the loan (+ interest fees) withing the same tx.
+
+<br>
+
+---
+
+### in this dir
+
+<br>
+
+* [smart contracts](smart_contracts)
+
+<br>
+
+---
+
+### resources
+
+<br>
+
+* [flashloans dashboard, by eigeinphi](https://eigenphi.io/mev/ethereum/flashloan)
+* [flashloans from dYdX margin trading, by eigenphi](https://medium.com/coinmonks/get-everything-for-nothing-how-to-use-flash-loans-to-launch-an-arbitrage-d8520827cbfe)
+* [kollateral aggregator](https://www.kollateral.co/)
+* [taking undercollaterized loans, by samczsun](https://samczsun.com/taking-undercollateralized-loans-for-fun-and-for-profit/)
+* [tfusd flashloan writeup](https://github.com/Jonah246/tfusd-flashloan-attack-write-up)
+* [defi hacks: flashloans](https://wooded-meter-1d8.notion.site/0e85e02c5ed34df3855ea9f3ca40f53b?v=22e5e2c506ef4caeb40b4f78e23517ee)
+* [flashloan-rs rust crate](https://crates.io/crates/flashloan-rs)
+* [flashloan monitor](https://tools.blocksec.com/flashloan/eth)
+* [code for flashmint arb](https://github.com/fifikobayashi/FlashMintArbitrage)
+

MEV_strategies/liquidations/flashloans/smart_contracts/README.md

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+## flashloans smart contracts
+
+<br>
+
+### code
+
+<br>
+
+* [sugardad (aave v2)](https://github.com/fifikobayashi/SugarDaddyFlashloan)
+* [dydx and aave aggregate](https://github.com/fifikobayashi/Aggregated-Flashloan)
+
+<br>
+
+---
+
+### resources

MEV_strategies/liquidations/flashloans/smart_contracts/dydx_flahsloan.sol

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+function callFunction(address sender, Account.Info memory accountInfo, bytes memory data) external {
+        // Use chi tokens 
+        uint256 gasStart = gasleft();
+
+        // Let the executor or the dYdX contract call this function
+        // probably fine to restrict to dYdX
+        require(msg.sender == executor || msg.sender == address(soloMargin));
+        
+        // Decode the passed variables from the data object
+        (
+            address[] memory sUSDAddresses,
+            uint256[] memory sUSDLoanIDs,
+            uint256 wethEstimate,
+            uint256 usdcEstimate,
+            uint256 ethToCoinbase
+        ) 
+            = abi.decode(data, 
+        (
+            address[],
+            uint256[],
+            uint256,
+            uint256,
+            uint256
+        ));
+
+        // Swap WETH for USDC on uniswap v3
+        uniswapRouter.exactOutputSingle(
+            ISwapRouter.ExactOutputSingleParams(
+                address(WETH),        // address tokenIn;
+                usdcTokenAddress,     // address tokenOut;
+                3000,                 // uint24 fee;
+                address(this),        // address recipient;
+                10**18,               // uint256 deadline;
+                usdcEstimate,         // uint256 amountOut;
+                wethEstimate,         // uint256 amountInMaximum;
+                0                     // uint160 sqrtPriceLimitX96;
+            )
+        );
+
+        // Swap USDC for sUSD on Curve
+        curvePoolSUSD.exchange_underlying(
+            1, // usdc
+            3, // sUSD
+            usdcEstimate, // usdc input
+            1); // min sUSD, generally not advisible to make a trade with a min amount out of 1, but its fine here I think because the overall risk of getting rekt is low
+        
+        // Liquidate the loans
+        for (uint256 i = 0; i < sUSDAddresses.length; i++) {
+            sUSDLoansAddress.liquidateUnclosedLoan(sUSDAddresses[i], sUSDLoanIDs[i]);
+        }
+
+        // We got back ETH but must pay dYdX in WETH, so deposit our whole balance sans what is paid to miners
+        WETH.deposit{value: address(this).balance - ethToCoinbase}();
+
+        // Pay the miner
+        block.coinbase.transfer(ethToCoinbase);
+
+        // Use for chi tokens
+        uint256 gasSpent = 21000 + gasStart - gasleft() + (16 * msg.data.length);
+        CHI.freeFromUpTo(owner, (gasSpent + 14154) / 41947);
+    }

MEV_strategies/liquidations/liquity.md

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+## [liquity](https://www.liquity.org/)
+
+<br>
+
+### tl; dr
+
+<br>
+
+* decentralized borrowing protocol that allows drawing interest-free loans against ether used as collateral
+
+<br>
+
+---
+
+### resources
+
+<br>
+
+* [liquity docs](https://docs.liquity.org/)