The liquidation bot docker image. The bot will continuously loop at a customizable loop interval. If the bot finds one or more liquidatable positions, it will execute liquidation transactions beginning at the position with the highest reward and proceeding down the list of all liquidatable positions. If a single liquidation fails (such as due to UTxO contention), the bot will automatically proceed directly to the next highest position.
NOTE: Users should expect some error messages in their logs. These are primarily due to unavoidable UTxO contention and race conditions in the bot. We are working on providing better error messages to end-users to distinguish between "normal" and "abnormal" exceptions, and will provide updates when this work is complete. In the interim, as long as the bot is not exiting prematurely and not appearing to stall during a transaction (excluding the wait time configured in the
INTERVALenvironment variable), it is likely that the bot is working as intended.
Each liquidation bot will liquidate a single market only. If you wish to liquidate loans in multiple markets, you must run two separate liquidation bots, set up individual wallets, and set up their env-files (details below) accordingly.
After modifying the env-file, run:
docker pull ghcr.io/liqwid-labs/liqwid-liquidation-bot:latest
docker run --env-file liquidationBotEnv liqwid-liquidation-bot:latest
To interact with the image, modify the environment variables (as described below)
in the liquidationBotEnv file.
Users must provide a wallet key in order to sign transactions. This can be done by supplying either a signing key or a mnemonic seed phrase.
NOTE: The wallet must be funded in order to run the bot. The wallet will require the "underlying" currency of the market to liquidation loans within that market; i.e., ADA is required to liquidate an ADA loan, and DJED (plus ADA for transaction fees) is required to liquidate a DJED loan. In the case of mnemonic wallets the provided funds must be staked at the account's primary address. For private key wallets the bot will use an unstaked address. The address you need to fund will be logged by the bot along with the current underlying balance at bot startup.
Liquidations rewards (either qADA, qDJED, or both) will be paid back to the wallet. These rewards are not automatically redeemed; you must redeem them manually. Future version of the bot will include a default redemption strategy.
The docker image expects either WALLET_MNEMONIC or SKEY in the environment.
WALLET_MNEMONIC is the list of seed phrase words as used in a light wallet:
NOTE: No environment variables require quotes.
word1 word2 word3and NOT"word1 word2 word3".
WALLET_MNEMONIC=word1 word2 word3
NOTE: The key generation process described below will produce sensitive data. Make sure you properly store the keys, and generate them on a machine you trust.
You can also generate a new private key with cardano-cli. For example:
# Enter a nix shell with the cardano cli available
nix shell 'github:input-output-hk/cardano-node#cardano-cli'
# Generate signing and verification keys
cardano-cli address key-gen --signing-key-file key.skey --verification-key-file key.vkey
# Extract the address for initial funding of the wallet; choose either the mainnet or `preview` testnet via the last option.
cardano-cli address build --payment-verification-key-file key.vkey --out-file payment.addr [--mainnet | --testnet-magic 2]NOTE: Once generated the address used to fund your wallet will be in payment.addr.
SKEY is the cborHex field of the key.skey file:
SKEY=cborHex_signing_key
The bot needs access to Kupo and Ogmios. Configure these via the following environment variables:
OGMIOS_PORT=1337
OGMIOS_HOST=localhost
OGMIOS_SECURE=false
OGMIOS_PATH=
BLOCKFROST_PORT=
BLOCKFROST_HOST=
BLOCKFROST_SECURE=
BLOCKFROST_PATH=/
BLOCKFROST_API_KEY=
Set the level of logging for debugging.
VERBOSE=true
default: false (No debug logging)
Enable the plaintext logger without color or control codes. Select other loggers:
DefaultLogger: Regular logger with colors/control codesNoColourLogger: Plaintext logger with no color/control codesNoControlLogger: Almost identical toNoColourLoggerbut implemented differently
LOGGER=DefaultLogger
default: DefaultLogger
Set the liquidation loop interval in number of slots.
INTERVAL=20
default: 5 slots
Set the Market with which the bot should run on.
Current available Markets:
- Ada
- DJED
- SHEN
MARKET=DJED
default: Ada
The batching bot exposes a heartbeat which will respond with the string "beat" if the service is active. Note that this will grab a port; when running multiple bots, you must set separate ports for each.
HEARTBEAT_ADDR=127.0.0.1
HEARTBEAT_PORT=2002
default: 127.0.0.1, port 2002
Set a minimum amount of "buffer" of underlying assets which the bot wont use for liquidations. This is required to keep some Ada to pay for transaction fees.
BUFFER=100000000
default: 0
Enable the profit-check, ensuring that liquidations transactions aren't making a loss in real-value at the time of the transaction. Enabled when uncommented with any value set.
CHECK_PROFIT=true
default: false
Add a minimum percentage of profit to ensure when making Liquidations. This can be useful to account for DEX fees, slippage, tx fees & further price drops since the transaction.
NOTE: If this is set higher than the current liquidation bonus, you will not make any liquidations
PROFIT_AMOUNT=1
default: 0%
Enable automatically redeeming the seized QTokens. Enabled when uncommented with any value set
ENABLE_REDEEMS=true
default: false
Send seized QTokens to an address, or, when ENABLE_REDEEMS is set, send redemeed underlying. Accepts Bech32 (addr1... format), or raw CBOR Hex
NOTE: This currently does not accept native/plutus script addresses, and ignores the Staking credential.
SEND_TO_ADDRESS=<your address here>
default: Nothing
The account index used for mnemonic wallets.
WALLET_ACCOUNT=1
default: 0