Cross-Chain Liquidation & Yield Agents

Real-time monitoring and automated execution agents for capturing DeFi liquidation opportunities and optimizing yield allocation across lending protocols.

Supports monitoring across protocols such as Aave and Compound, detecting under-collateralized positions and triggering execution strategies.

System Capabilities

• Detect liquidation opportunities in ~1–3 seconds
• Event-driven monitoring of borrower risk state
• Automated liquidation execution triggers
• Dynamic yield allocation across lending protocols
• Historical backtesting against blockchain datasets

Architecture Overview

flowchart TD

A[Blockchain Nodes] --> B[Protocol Indexers]

B --> C[Risk Monitoring Agent]

C --> D[Liquidation Engine]

D --> E[Execution Agent]

B --> F[Yield Evaluation Agent]

F --> G[Capital Allocation Strategies]

subgraph Shared Infrastructure
H[Event Bus]
I[State Store]
J[Backtesting Engine]
end

C --> H
D --> H
F --> H

H --> I
I --> J

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Key Components

Risk Monitoring Agent

Tracks borrower collateral and debt balances across lending protocols and computes health factors to detect liquidation thresholds.

Liquidation Detection Engine

Evaluates borrower states and identifies profitable liquidation opportunities.

Execution Agents

Prepare and submit liquidation transactions when conditions are met.

Yield Evaluation Agent

Analyzes lending rates and protocol incentives to dynamically allocate capital.

Backtesting Framework

Replays historical blockchain data to evaluate liquidation and yield strategies before deployment.