Liquidators
Who can liquidate unhealthy positions and what execution infrastructure is required.
Overview
Liquidations are permissionless once a position crosses the liquidation threshold. Any eligible liquidator can repay the allowed debt amount and trigger the settlement path.
LP collateral is harder to unwind than simple token collateral. Liquidators track the same risk state, vault-token mapping, route depth, and unwind assumptions used by the protocol.
Coverage Model
Permissionless participation
Any keeper or execution desk can liquidate if it can monitor positions, source execution liquidity, and unwind the LP formats Avana supports.
DEX-specific handling
Liquidation is not a generic token sale. Operators need DEX-aware logic for fee realization, position removal, routing, and settlement into the debt asset.
Coverage quality
LP positions are harder to unwind than simple tokens. Operators that model the full route for supported DEXs usually handle stress better than bots that only react to a health trigger.
Execution Requirements
A liquidator for Avana needs infrastructure to value positions, simulate exits, source capital, and deliver a transaction that completes the unwind path.
- Position monitoring and debt drift tracking
- Simulation for route depth, slippage, and liquidity availability
- Transaction delivery with flashloan or prefunded execution paths
- DEX adapters for the LP families the protocol supports
Operational Notes
- Track the same risk state the protocol uses, not a separate heuristic.
- Unwind from a clean state transition in one atomic job whenever possible.
- Price fee realization, route depth, and residual value before optimizing for speed alone.
- Treat partial coverage and full coverage as separate cases with separate routing assumptions.
Build DEX-specific unwind, fee realization, and debt repayment as one workflow. Disconnected steps make it easier for a coverable liquidation to fail in execution.