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Euler Liquidation Bot

Basic bot performing liquidations on the Euler platform. Liquidation docs.

Installation

npm i

Configuration

Configuration through .env file:

  • MAINNET_JSON_RPC_URL - your JSON RPC provider endpoint (Infura, Rivet, Alchemy etc.).
  • MIN_ETH_YIELD - minimum liquidation yield in ETH, taking into account gas cost. Default 0.05.
  • PRV_KEY - private key of the account executing EOA liquidations. The account needs to hold ETH to execute liquidation transactions.
  • RECEIVER_SUBACCOUNT_ID - optional ID of a sub-account to which the yield will be transfered after liquidation.
  • ONEINCH_API_URL - optional 1inch swap API URL. If set, the bot will try to swap as much collateral as possible first on 1inch, presumably at better rates, and the remainder on Uni V3 exact output.
  • SKIP_ACCOUNTS_WITH_INSUFFICIENT_COLLATERAL optional, if set to string true, skip processing accounts with largest deposited collateral value less than the MIN_ETH_YIELD.

Optional - gas settings

  • TX_FEE_MUL - transaction fee multiplier. Default maxFeePerGas and maxPriorityFeePerGas returned by provider will be multiplied by this value.
  • TX_GAS_LIMIT - custom gasLimit.

Optional - the bot can be configured to push reports to Discord

  • DISCORD_WEBHOOK - discord webhook URL.
  • REPORTER_INTERVAL - reporting interval in seconds.

Optional - send transactions through flashbots

  • USE_FLASHBOTS - if set to a string true, send the final liquidation tx through flashbots. Default false.
  • FLASHBOTS_RELAY_SIGNING_KEY - key used to identify the searcher in flashbots relay. If not set a random wallet will be generated.
  • FLASHBOTS_MAX_BLOCKS - sets the number of blocks during which flashbots will try to include the tx. If not set, flasbots default 25 blocks will be used.
  • FLASHBOTS_DISABLE_FALLBACK - by default, if flashbots call fails, the liquidation bot will attempt to send a regular tx. Set to string true to disable this behaviour.

Running

npm start

Tests

npx hardhat test

Dependencies

The bot depends on Eulerscan project, maintained by Euler, to receive updates about accounts in violation (healthscore < 1). Eulerscan provides a websocket connection through which JSON Patch updates to subscribed data are pushed. It is publicly available on wss://escan-mainnet.euler.finance.

Bot algorithm

The main bot logic simulates liquidations through multiple strategies and parameters to find the best candidate. Two strategies were explored, of which only EOA is currently executed:

  • EOA strategy. Liquidations are performed by constructing batch transactions to Euler's Exec contract, which are executed by EAO from PRV_KEY configuration.
  • Bot contract strategy. A rudimentary LiquidationBot contract is included in the repo. Only basic tests are available. Currently not used in production.