Superlend Liquidation Bot

An automated liquidation bot for the Aave protocol that monitors positions, identifies liquidation opportunities, and executes profitable liquidations using flash loans and DEX swaps.

Overview

This service continuously monitors Aave positions, identifying accounts that have fallen below the required health factor. When profitable liquidation opportunities are found, it:

1. Calculates the optimal liquidation amount
2. Determines the best DEX route for token swaps
3. Executes the liquidation using flash loans
4. Swaps the received collateral for profit

Features

• Automated Monitoring: Periodically checks for liquidatable positions
• Multi-RPC Support: Failover capability with primary and backup RPC nodes
• Profit Calculation: Considers liquidation bonuses, DEX fees, and gas costs
• Smart Routing: Uses IguanaDEX's smart router for optimal token swaps
• Concurrent Execution Prevention: Ensures only one liquidation process runs at a time
• Comprehensive Logging: Detailed logging of all operations and errors

Prerequisites

• Node.js (v18 or higher)
• PostgreSQL database
• Access to Etherlink RPC nodes
• Wallet with sufficient funds for gas
• Yarn package manager

Installation

1. Clone the repository:

git clone <repository-url>
cd liquidation-bot

2. Install dependencies:

yarn install

3. Create and configure the environment file:

cp .env.sample .env

Configuration

Edit the .env file with your settings:

# Node URLs
NODE_URL_PRIMARY=<your-primary-rpc-url>
NODE_URL_BACKUP=<your-backup-rpc-url>

# Database
DB_URL=postgresql://<user>:<password>@<host>:<port>/<database>

# Blockchain
CHAIN_ID=<target-chain-id>
PRIVATE_KEY=<liquidator-wallet-private-key>

# Scheduling
LIQUIDATION_CRON_EXPRESSION="*/5 * * * *"  # Runs every 5 minutes

Database Setup

The service requires a PostgreSQL database with a table for tracking liquidatable positions: This table is being setup by the liquidation-indexer

Running the Service

# development mode
yarn run start:dev

# production mode
yarn run build
yarn run start:prod

# watch mode
yarn run start

Architecture

The service consists of several key components:

• SchedulerService: Manages the periodic execution of liquidation checks
• LiquidationService: Core logic for processing liquidation opportunities
• RpcService: Handles blockchain interactions and DEX operations
• RepoService: Manages database operations for tracking positions

Monitoring

The service uses Winston for logging. All operations and errors are logged with appropriate context and stack traces when applicable.

Logs include:

• Liquidation opportunities found
• Execution attempts and results
• RPC failovers
• Database operations
• Error conditions

Security Considerations

• Secure storage of private keys
• RPC node reliability and security
• Database access controls
• Gas price management