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Injective Liquidator Bot

The Injective Liquidator Bot is a simple liquidation bot for executing liquidations on derivative markets on Injective. This bot operates by continuously monitoring for positions eligible for liquidation using the LiquidablePositions API. Upon identifying a liquidable position, the bot proceeds to initiate the liquidation process by dispatching a MsgLiquidatedPosition to the chain which executes the liquidation while also simultaneously creating the necessary order to facilitate an efficient liquidation.

The liquidation order is created with:

  • The liquidable position's quantity
  • The liquidable position's mark price
  • 1x leverage
  • A random UUID CID

Once running the bot activates the liquidable positions lookup process every 10 seconds.

Running the bot

The bot can be started using the restart.sh script.

Additionally, the user can build an executable using the make build command. This will generate an executable called injective-labs-liquidator

Bot commands

Command Description
start Start the bot to execute liquidable positions
version Show the bot version information

Configuration

The configuration is done with a .env file. You can create a copy of the .env.example file, and complete all the required information.

If the created configuration env file has a name different than .env you need to use the parameter -e or -env to specify the file name (this allows the user to prepare different configurations for different markets)

General Configuration Options

Option Description
LIQUIDATOR_SUBACCOUNT_INDEX The number of the subaccount the bot will use to send the liquidation requests to the chain (the account is determined by the configured credentials)
LIQUIDATOR_MARKET_ID ID of the market the bot will use to find liquidable positions and execute the liquidations
LIQUIDATOR_MAX_ORDER_AMOUNT This configuration defines a maximum amount for the liquidation orders (in base asset). If defined the bot could perform partial liquidations
LIQUIDATOR_MAX_ORDER_NOTIONAL This configuration defines a maximum notional (amount x price) for the liquidation orders (in quote asset). If defined the bot could perform partial liquidations

Network Configuration options

Option Description
LIQUIDATOR_NETWORK_NAME Network the bot will connect to. Possible balues are mainnet, testnet or custom. The next values are only required when using custom to connect to a private node
LIQUIDATOR_CHAIN_ID The network chain id
LIQUIDATOR_LCD_ENDPOINT Network LDC endpoint
LIQUIDATOR_TENDERMINT_ENDPOINT Network Tendermint endpoint
LIQUIDATOR_CHAIN_GRPC_ENDPOINT Network Chain GRPC endpoint
LIQUIDATOR_CHAIN_STREAM_GRPC_ENDPOINT Network Chain Stream GRPC endpoint
LIQUIDATOR_EXCHANGE_GRPC_ENDPOINT Network Indexer Exchange GRPC endpoint
LIQUIDATOR_EXPLORER_GRPC_ENDPOINT Network Indexer Explorer GRPC endpoint

When using a custom network you can check the endpoints in your private node's configuration (in general the values in the .env.example file are correct).

Credentials Configuration Options

The following configuration options can be specified for the bot to use a Cosmos Keyring to obtain the account private key (the user can provide directly the account private key using only the LIQUIDATOR_COSMOS_PK option)

  • LIQUIDATOR_COSMOS_KEYRING
  • LIQUIDATOR_COSMOS_KEYRING_DIR
  • LIQUIDATOR_COSMOS_KEYRING_APP
  • LIQUIDATOR_COSMOS_FROM
  • LIQUIDATOR_COSMOS_FROM_PASSPHRASE
  • LIQUIDATOR_COSMOS_PK
  • LIQUIDATOR_COSMOS_USE_LEDGER

Configuration to run the bot using a grantee account

The bot can also be configured to run using a delegated account. With this configuration the bot will use two accounts: the granter and the grantee.

  • Granter account: is the account that has balances to create the liquidation order and will be associated to the position created once the liquidation order is executed
  • Grantee account: it the account used to sign the transactions broadcasted by the bot. The only requirement for the account is to have enough INJ tokens to pay for the gas fee for the transactions

When running using a delegated account, the MsgLiquidatePosition message is not sent directly, but wrapped inside a MsgExecute, which is executed through Authz module's authorization mechanism.

To activate the delegated account mode the user has to configure the following options:

  • LIQUIDATOR_GRANTER_PUBLIC_ADDRESS: public Injective address of the account to be used as granter account
  • LIQUIDATOR_GRANTER_SUBACCOUNT_INDEX: index number of the subaccount from LIQUIDATOR_GRANTER_PUBLIC_ADDRESS to be used

To deactivate the delegated account mode the LIQUIDATOR_GRANTER_PUBLIC_ADDRESS option has to be left empty (ie: LIQUIDATOR_GRANTER_PUBLIC_ADDRESS="" or LIQUIDATOR_GRANTER_PUBLIC_ADDRESS=).

When using the delegated account mode, all the credential configuration options should be configured with the information for the grantee account.

Using Authz to configure a delegated account You can use the script scripts/delegateGrant.go as an example on how to grant permissions from a granter account to a grantee account to execute the MsgLiquidatePosition message.