Bot to automatically liquidate undercollateralized and expired dYdX accounts.
Requires a running docker engine.
docker run \
-e LIQUIDATOR_ACCOUNT_OWNER=0x2c7536E3605D9C16a7a3D7b1898e529396a65c23 \
-e LIQUIDATOR_ACCOUNT_OWNER_PRIVATE_KEY=0x4c0883a69102937d6231471b5dbb6204fe5129617082792ae468d01a3f362318 \
dydxprotocol/liquidator
This service will automatically liquidate undercollateralized and expired Accounts on the dYdX Solo Protocol. Liquidations on dYdX happen internally between Accounts, so no actual ERC20 token movements occur.
In order to use this liquidator bot, you will need a funded dYdX Account. If you use the default of LIQUIDATOR_ACCOUNT_NUMBER=0, you can fund your dYdX Account on trade.dydx.exchange/account.
Successfully liquidating Accounts will modify your dYdX Account balances. You can liquidate assets you do not have in your Account provided you have another asset as collateral, which will just cause your dYdX Account Balance to go negative in that asset.
Liquidations on Solo reward a 5% spread on top of the current oracle prices for the assets being liquidated and used as collateral. Example:
Undercollateralized Account:
+2 ETH
-350 DAI
Liquidator Account:
+100 ETH
-1000 DAI
Oracle Prices:
ETH Oracle Price: $200
DAI Oracle Price: $1
Fully liquidating this account would cause 350 DAI to be paid to zero out its balance, and would reward 350 DAI * ($1/DAI / $200/ETH) * 1.05 = 1.8375 ETH as payout. After the liquidation the account balances would be:
Undercollateralized Account:
+0.1625 ETH
0 DAI
Liquidator Account:
+101.8375 ETH
-1350 DAI
| ENV Variable | Description |
|---|---|
| LIQUIDATOR_ACCOUNT_OWNER | Ethereum address of the dYdX account owner that will do the liquidations |
| LIQUIDATOR_ACCOUNT_OWNER | Ethereum private key the dYdX account owner that will do the liquidations |
| LIQUIDATION_KEY_EXPIRATION_SEC | Amount of time in seconds to wait before trying to liquidate the same account again |
| GAS_STATION_URL | URL of the gas station API to use |
| GAS_PRICE_MULTIPLIER | How much to multiply the fast gas price by when sending transactions |
| GAS_PRICE_UPDATE_FREQUENCY_SEC | How frequently to update the gas price |
| LIQUIDATION_COLLATERAL_PREFERENCES | List of preferences for which collateral markets to receive first when liquidating |
| LIQUIDATION_OWED_PREFERENCES | List of preferences for which markets to liquidate first on an account when liquidating |
| LIQUIDATOR_ACCOUNT_NUMBER | The dYdX account number to use for the liquidating account (0 will show up on trade.dydx.exchange/account) |
| MIN_LIQUIDATOR_ACCOUNT_COLLATERALIZATION | The desired minimum collateralization of the liquidator account |
| ETHEREUM_NODE_URL | The URL of the Ethereum node to use |
| NETWORK_ID | Ethereum Network ID |
| ACCOUNT_POLL_INTERVAL_MS | How frequently to poll for liquidatable accounts |
| MARKET_POLL_INTERVAL_MS | How frequently to poll for market updates |