Liquidation Bot
Evoq has its own liquidation mechanism, mirroring Venus. As a result, it operates with dedicated liquidation bots.
Overview
Liquidation can occur when a user's Borrow Limit used exceeds 100%.
Due to the Close Factor, the amount that can be processed in one transaction is up to 50% of the user's Borrowed Amount.
The liquidation penalty is 10%.
Use Case
The liquidation of the ecosystem
Liquidation in Evoq plays a vital role in maintaining a healthy and secure financial ecosystem by:
Mitigating Default Risk: It allows for the recovery of assets from accounts that fail to meet collateral requirements, reducing the risk of insolvency.
Ensuring Market Stability: By efficiently handling bad debt, liquidation helps sustain long-term market integrity and resilience.
Encouraging Liquidator Participation: The LI mechanism provides incentives for liquidators to actively engage in the process, ensuring continuous liquidity and market efficiency.
Example
The Liquidation Contract below performs five key actions.
The example contract is a capital-free liquidation using Aave flashloan. Therefore, you will pay a fee to Aave flashloan and receive a smaller amount of incentive than you expected. If you want to maximize your incentive, you should not use the contract below.
Borrow a borrower's loan asset using Aave Flashloan.
proceed to liquidate in Evoq Contract.
Swap the Reward (the borrower's deposit asset) received in step 2 for the flashloan asset via Pancake Swap V3.
repayment to Aave Flashloan.
Send the remaining Liquidate Reward to the liquidator.
Liquidation Bot
The provided GitHub repository contains a sample liquidation bot contract for Evoq on Venus.
Key Features
Not a competitive bot but designed for large-scale collateral liquidation in a single transaction using flash loan.
Requires only gas fees—no additional funds needed.
Can be used as-is or as a foundation for further improvements.
For questions, join our Discord.
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