: Account 0, which is liquidator's account that calls the liquidation bot. We are using DeFi lending account here.
: Account 0, which is the trading account that help trade on trading venues.
: The price of collateral on chainlink oracle from DeFiner's protocol.
: Liquidation price, which is
: The price of the collateral on trading venue.
The liquidator bot pull liquidatable account(s) from DeFiner's protocols.
The liquidator bot pull liquidation price forom DeFiner's protocols.
The liquidator bot get price of collateral on trading venue.
If ,which means potentially profitable, goes to Step B, otherwise stop here.
Liquidation bot calls smart contract to liquidate .
should receive X asset at .
After confirmation, goes to Step C.
There are two options of trading venues:
: Execution on centralized exchanges.
: Execution on DeFi exchanges.
We choose currently.
Liquidator bot signals to execute a sell order to sell X asset at
Now has asset, USD.
When accumulate asset to a certain amount, the liquidator bot triggers rebalance.
transfer asset to . Now has 0 asset, USD. has asset, assest short position and USD.
Liquidator bot signals to sell X asset and close short position.
transfers the money to .
now has USD.