This is a bot designed to monitor and execute liquidation actions for a Collateralized Debt Position (CDP) module in a blockchain-based system. The bot consists of two parts: a smart contract that allows flashloan borrowing, and a script for executing liquidations.
The bot constantly monitors the health of the CDPs in the system, querying data from The Graph to check factors such as collateralization ratio and outstanding debt. When a CDP is identified as being at risk of becoming undercollateralized, the bot will initiate the liquidation process.
The liquidation process involves using a portion of the CDP's collateral to pay off the outstanding debt. The bot will use a flashloan to borrow the necessary amount of tokens to repay, and then initiate a sell order for the collateral in the open market via 1inch API.
Create .env file following .env.example for proper testing
Run yarn test for running all tests.
Run yarn test:better if you also set ETHERSCAN_API_KEY. This command allow showing readable trace for external contracts.
In order to do integration testing, following steps should be done:
docker-compose upin this repository to start needed servicesyarn test-deployin this repository to deploy CDP and botyarn create-localandyarn deploy-localin the graph repository to deploy the graph indexer. You should set an address and start block in thesubgraph.yamlbefore deploying the graph indexersh bot.shto start a bot In the bot logs you will see the details of liquidation.
- Subgraph repository: contains the graph manifest for data indexing
- CDP repository: implementation of CDP module