DeFi Liquidation Bot

A DeFi liquidation bot that monitors lending protocol health factors in real-time and executes profitable liquidations before other searchers.

Protocol Support:

• Aave V3 (Ethereum, Arbitrum, Optimism, Polygon, Base)
• Compound V3 (Ethereum, Arbitrum, Base)
• MakerDAO/Spark Protocol
• Morpho Blue
• Venus Protocol (BSC)

Position Monitoring:

• Real-time health factor tracking for all positions
• Price feed monitoring with deviation detection
• Watchlist of positions approaching liquidation threshold
• Simulate liquidation profitability before execution
• Priority queue — largest profit opportunities first

Execution:

• Flash loan-powered liquidations (no capital required)
• Atomic liquidation + swap + repay in single transaction
• Flashbots for MEV protection on Ethereum
• Gas optimization with EIP-1559 dynamic fee estimation
• Multi-chain parallel monitoring

Profitability Engine:

• Calculate liquidation bonus per protocol
• Estimate gas costs and swap slippage
• Minimum profit threshold filter
• Optimal collateral selection for best bonus
• Post-liquidation swap routing via DEX aggregator

Risk Management:

• Maximum gas expenditure per liquidation
• Failed transaction retry with gas escalation
• Contract health monitoring and pause capability
• Daily profit and loss tracking
• Competitor analysis — skip if other bots are faster

Tech Stack:

• Solidity smart contracts (Foundry)
• TypeScript bot with ethers.js
• Redis for position priority queue
• PostgreSQL for liquidation history
• Grafana monitoring dashboard
• Docker Compose deployment