Liquidators Leaderboard

Overview

This indicator shows the ranking of the top liquidators based on their profits and number of liquidations.

If the value of the collateral provided for a loan drops below the maximum allowed threshold, it is subject to being liquidated by a liquidator. Liquidators receive a "liquidation bonus", or a percentage of the collateral provided, to incentivize them to rebalance the protocol and avoid debts that cannot be repaid.

This indicator is useful, because it gives an idea of the most involved liquidators with the protocol, the dependencies on each and their overall performance.

How can I use it?

There have not yet been any liquidations on Stakewise. The chart above is from the Aave GHO Risk Radar to help provide context to what the chart would look like when liquidations occur.

Liquidators play a critical role in mitigating risk for DeFi lending protocols. Knowing the top liquidators is helpful as they are often more experienced and knowledgeable about the protocol and the risk involved. In addition, having a sizeable crowd of liquidators engaged with the protocol shows a healthy sign, in the case of any risk events the more liquidators aware the better.

Furthermore, for up and coming liquidators by observing and imitating better liquidators in the protocol, one can learn from their experience and make use of their insights and strategies. Experienced liquidators often have established techniques that contribute to their success. Imitating these habits can help up and coming liquidators to develop better practices and improve their performance.