How does a Liquidation Bot work?
The bot reads positions and oracle prices, checks eligibility, obtains repayment assets, and calls the protocol's liquidation function. Other liquidators may compete for the same position.
What should trading bot developers know about Liquidation Bot?
Eligibility, repayment limits, collateral discounts, and oracle behavior are protocol-specific. A transaction may fail if another actor liquidates first or the position becomes healthy before execution.
Sources & further reading
Definitions are editorial summaries of the sources below. Protocol behavior and provider policies can change; consult the linked documentation for implementation details.