Liquidator Bots
Liquidator bots monitor accounts near liquidation and perform liquidations to keep the protocol healthy. Liquidators inherit risk and must maintain sufficient collateral to take on positions.
Step 1: Understand liquidation mechanics
Liquidations transfer liability from the liquidated account to the liquidator. For protocol details, see:
Step 2: Choose a reference implementation
The canonical bot lives in keeper-bots-v2:
src/bots/liquidator.tssrc/bots/liquidatorDerisk.ts(derisk helper)
Step 3: Prepare the environment
Follow the keeper bots setup and initialize a user account:
Liquidator bots require collateral. Make sure the wallet is funded and has USDC deposited.
Step 4: Run and tune
Once configured, run the bot via the keeper-bots-v2 config file and monitor for:
- RPC latency / timeouts
- competing liquidators
- position risk and exposure
Step 5: Iterate and harden
Common improvements include:
- filtering markets or subaccounts
- using derisk strategies
- adding guardrails for exposure and max size
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