Required Infrastructure

There are multiple bots that pool creators need to ensure are running to maintain pool safety.

Liquidation & Bad Debt Auction Bot

Liquidation bots must be set up to monitor the pool and liquidate any underwater users. The same bot should be used to fill bad debt auctions if one is created. Without one of these bots, users may create bad debt, harming backstop depositors.

Liquidation Auction Documentation: Liquidation Management

Bad Debt Auction Documentation: Bad Debt Management

Example Liquidation & Bad Debt Auction Bot: https://github.com/blend-capital/liquidation-bot

Interest Auction Bot

A bot must also be run to fill interest auctions.

Interst Auction Documentation: Interest Management

Example Interest Auction Bot: https://github.com/blend-capital/liquidation-bot

It is imperative that all interest auctions are filled. If an interest auction is not filled interest auctions may be permanently stuck for that pool, resulting in a permanent loss of revenue for pool backstop depositors. This may necessitate a pool migration. More details: Potential Improvements