Morpho Liquidator 🤖

Liquidation Bot designed for Morpho Blue

Getting Started

1. Install the dependencies

yarn install

For CI:

yarn install --frozen-lockfile

2. Configure the environment variables

ETH_RPC_URL=https://ethereum-public.nodies.app
BASE_RPC_URL=https://base-public.nodies.app
SEPOLIA_RPC_URL=https://sepolia-public.nodies.app

ETH_WALLET_PRIVATE_KEY=<YOUR_NON_PRODUCTION_PRIVATE_KEY>

❗❗❗ IMPORTANT: Do not use production/mainnet private keys in your .env ❗❗❗

3. Configure the bot's settings on our index file.

const config: BotConfig = {
  chainId: 1, // Ethereum Mainnet
  cronSchedule: "*/10 * * * * *", // Runs every 10 seconds
  timeZone: "America/Los_Angeles",
  maxSlippage: 50, // this is scaled by 10000, so 50 is 0.5%
  maxImpact: 2, // this is scaled by 100, so 2 is 2%
  swapFromToken: USDC_TOKEN_MAINNET,
  swapToToken: USDC_TOKEN_MAINNET,
  minProfit: 500, // in USD
};

4. Run the bot 🤖

yarn start

Features

• Fetches whitelisted markets from Morpho API
• Fetches liquidatable positions from Morpho API
• Swaps configurable asset to obtain loan tokens
• Checks existing allowances before approving tokens
• Liquidates profitable positions in Morpho Blue
• Swaps liquidated collateral tokens for configurable asset
• Flashbots Provider integration ⚡️🤖
• Periodical execution via cron job
• Chain, swap slippage and swap max impact are configurable

Considerations

• This bot supports the following networks: Ethereum Mainnet, Ethereum Sepolia and Base Mainnet
• This bot has been tested on Sepolia, you can track the bot interactions here.
• This bot only executes full liquidations, but it can be modified to use a different strategy (i.e. partial liquidations)
• This bot can run in Sepolia, however, the swaps won't be executed because ParaSwap is not available on Sepolia. It will only fully liquidate the position; and it will not sell the seized collateral or calculate profits.
• The scripts used to deploy the contracts (oracle, tokens) and send the supply collateral/borrow transactions can be found here.

Roadmap

• Integrate a new indexer for positions morpho-markets
• Smart contracts executed liquidation w/ flash loans
• Add support for AWS Secrets Manager to pull private keys from it
• Reth Extension (ExEx) for live tracking of liquidatable positions as indexer

Credits

Morpho's liquidation bot example was a valuable reference for developing this bot, along with Morpho's docs.