/biz/ - Business & Finance

>>22648412
What does it mean. If you provide the liquidity you make a ton of $??

>>22648717
You pay off their loan and you get rewarded for some reason. Don't fully understand it honestly. Anyways the bigger the loan the bigger the reward.

shit i'm missing 20 tether

>>22648717
it means you pay off what he can't and you get to keep that amount in his collateral + penalty fee and in this case he owes Tether but used ETH as collateral so you pay full price get 5% extra back.
5% is not really worth it.

>>22648887
5% is over 100 ETH...

cant someone just do a flash loan?

>>22648887

So a free 5% on 650K isn't worth it? With the exception of ETH slippage what is the risk here? I've never looked into these liquidations before. Any sources on how it works in detail? Its interesting

>>22648942

Flash loan has to be paid back in the same block plus fee. You'd still be at a deficit

>>22648887

>2 Whole bitcoin is not really worth it.

>>22648967
I tried to find something like that but couldn't find anything. Basically when you take a loan if your collateral drops below a certain % value of your loan it goes up for liquidation. So that much makes sense but I don't really understand how the liquidation itself works.

Like, I don't understand how paying off someone else's loan can result in a profit. I'm so confused

>>22649173
It may be different with other tokens, but with link you're allowed to borrow .65 of your collateral, but get liquidated if your loan to collateral rate goes to .7
So there's some built in extra there to cover stuff like this.

So he's not actually in the negative yet, but he's lower than he's allowed to be without getting liqd

>>22649269
>It may be different with other tokens, but with link you're allowed to borrow .65 of your collateral

ahhhhhh

it all makes sense now

>>22648412
On my way right now. Gonna use my swing account to casually liquidate this fuck real quick.

You don’t have to pay all of it retards.

You can just pay what you have and eat the bonus, at a certain point he’ll go back over liquidation though.

t. LINK beluga that got partially liquidated for 2500 LINK

So if you have tether and want ETH at a 5% discount you should be taking it.

He’s WELL under liquidation threshold though, you could eat quite a bit off him.

>>22649411
Where can I do this? I never used AAVE, but have like $50k USDT I could use right now

>>22649518
https://app.aave.com/liquidations

>>22649535
Thanks, what's the downside of it?
Guess I have to do some DD first

>>22649580
I don't really know, I'm hoping you'll try it and let us know how it goes lol

When you do the liquidation there's a gas fee so that's part of it. You have to be doing a liquidation large enough that it's still profitable after paying the fee. That's why there are tons of small ones in the list

>>22649580
The way I understand it but haven't looked into it either is you can get 50K USDT worth + 5% of ETH and then hypothetically flip that ETH back to USDT. I supposed if ETH crashed in the process that would be part of the risk so you have to deal with slippage. I'm going to look more into this it seems legit.

>>22649647

Hypothetically an easy nearly 5% after gas fees. You could easily flip that right back in Uniswap. You could even have everything set up right away and alter the gas fees so its nearly an instant transaction. Less profit but more guarantee. Go check gasstation.io or whatever it is.

>Fail with error 'Liquidation failed: Health factor is not below the threshold'

Looks like someone or a bot was faster.
From tg:
>Sometimes liquidations are displayed in the UI but have already been liquidated by a bot

>>22650050
the (((devs))) probably rig it so only they can earn money

>>22648942
Do flash loans let you buy out liquidations?

>>22650129
>Do flash loans let you buy out liquidations?
How could they? You need to return the principal by the end of the tx