Bonzo Finance Documentation
  • 🤠Overview
  • 🗺️Roadmap
  • GET STARTED
    • 🏦Bonzo Mainnet
      • Connect Wallet
      • Supply Assets
      • Withdraw Assets
      • Enable / Disable Collateral
      • Borrow Assets
      • Repay Loan
      • Dashboard Metrics Explained
    • ❗Troubleshooting
    • 🧪Bonzo Testnet
    • 💸Protocol Fees & Revenue
    • 💧Liquidations
    • 🌐Hedera ($HBAR)
      • Hedera Wallet Setup
      • Obtaining $HBAR
      • Bridging Assets
  • Rewards & Incentives
    • 🥩Single-Sided Staking
    • ✨Native APYs & Liquidity Incentives
    • 🎟️Bonzo Points
      • Pre-Season Points Airdrop
      • Season One Points
      • Season Two Points
    • 🖼️Bonzo NFT Collectables
      • 1st Edition Bonzo NFTs
      • Cybernetic NFT
      • Commemorative NFT
      • Ownership & License Terms
  • SECURITY & RISK
    • ⚠️Risk Framework
    • 🛡️Audits
  • CONTRIBUTORS
    • 🐵Team
    • 👷Careers
    • 🎉Community
  • DEVELOPER
    • 📊Bonzo v1 Data API
    • 📜Protocol Contracts
    • 🤖Liquidation Bots (Beta)
      • 🛸SaucerSwap DEX
      • Environment Setup
      • Liquidator Contract
      • Configuring Hardhat
      • Performing a Liquidation
    • ⚡Flash Loans
    • 🔮Oracles
      • Supra
      • Chainlink
    • 👾GitHub
    • 🐞Bug Bounty
  • RESOURCES
    • 🟢Status Page
    • 🎨Brand Assets
    • 📚Glossary
    • 📞Contact
      • Support
      • Community
  • TRANSPARENCY
  • 🏦Accounts & Contracts
  • LEGAL
    • 📃Terms of Service
    • 🔒Privacy Policy
Powered by GitBook
On this page
  1. DEVELOPER

Liquidation Bots (Beta)

PreviousProtocol ContractsNextSaucerSwap DEX

Last updated 5 months ago

Disclaimer: This tutorial is for educational purposes only. Liquidations involve financial risk. All participants should ensure compliance with applicable laws and regulations in their jurisdiction before performing any liquidation activities.

In the Bonzo Protocol, liquidation occurs when a borrower's collateral value falls below a certain threshold due to changes in asset prices or accrued interest. Liquidators can repay a portion of the borrower's debt and receive a liquidation bonus on the collateral they obtain. This process helps maintain the protocol's solvency and incentivizes liquidators.

This tutorial will demonstrate how to perform a liquidation on the Bonzo Protocol deployed on the Hedera blockchain using a custom smart contract and a Hardhat script.

Core Concepts:

  • Collateral Asset: The asset supplied by the borrower.

  • Debt Asset: The asset borrowed by the borrower.

  • Health Factor: A value representing the safety of the borrower's position. A health factor below 1 indicates that the position is undercollateralized and can be liquidated.

Example Code & Script Repositories:

  • Smart Contract:

  • Sample Scripts:

🤖
LiquidationContract.sol
liquidationFlashLoan scripts