Yield Protocol Liquidator

Liquidates undercollateralized yDAI-ETH positions.

On each new block, it calls the controller's isCollateralized method for each user that has previously opened a position. This is done by checking all Borrowed events and by compiling a database of addresses with currently open positions.

If isCollateralized returns false, it proceeds to call the Liquidations contract's liquidate function to claim the liquidation incentive. This can optionally be batched with the buy call to buy as much of the position as possible and liquidate it for DAI on 1inch/uniswap.

CLI Options

• Yield configuration with necessary addresses
• Eth endpoint
• Private key
• start-block
• should always buy? How much should it try to buy?
• minimum amount

Notes

• Generate corpus of addresses to monitor
• Nonce manager
• Gas price manager
• Frontrunner
• For an address: check if it can be liquidated -> liquidate
• trait Liquidator { fn monitor(user: Address); fn liquidate(user: Address);}

Testing

• Go to the yDAI directory and copy the setup_liquidation.js file to the scripts/ dir
• Deploy the contracts npx truffle migrate --reset
• cargo run to launch the liquidator
• Create a vault that can be liquidated npx truffle exec scripts/setup_liquidation.js
• Watch the liquidator see that the vault became undercollateralized!