The Liquidation Opportunity Program is designed to incentivize community members to run liquidation bots. Intentionally under-collateralized positions will be created to reward community members for keeping the UMA system secure and appropriately collateralized.
On Friday, August 14th at 11:30am Pacific Time (i.e. San Francisco time), Risk Labs will intentionally create an under-collateralized position, creating an on-chain profit opportunity of approximately $2,000 for any liquidator bot to take.
You'll need to make sure you have an account loaded with enough
liquidate the position, and also enough
ETH to pay for the necessary gas costs
associated with the liquidation transaction.
The in-depth tutorial here will walk you through the process of running a bot through various methods. However, the most expedient way to run a bot is from the Docker image. This process is detailed in the Docker section of that tutorial.
For your convenience, however, the following is a quick summary of the important points.
This short guide only teaches you how to run a bot. To take advantage of the liquidation opportunity, you will have to tweak your polling interval and liquidation sensitivity amongst other variables.
First, create a file to set the appropriate configuration for your liquidation bot. Please edit the following example with your own values. You can reference the tutorial for appropriate values.
Once you have a properly configured
.env file, use the following commands to
pull the Docker image and run a container with your specified configuration.
When you are familiar with using the Docker image, you can deploy the Docker image on any cloud service provider of your choice, or alternatively you could run it locally on your machine.