1/ Coming up on #MEVexplained – Liquidations, another popular MEV opportunity made possible by borrowing money/taking loans on d
13 Jun 2022, 12:18
1/ Coming up on #MEVexplained – Liquidations, another popular MEV opportunity made possible by borrowing money/taking loans on decentralized lending protocols like Aave, MakerDAO and Compound.
Here’s a link to our previous explanation about Arbitrage:
6/ Multiple bots compete with one another to capitalize on this arbitrage opportunity. This requires them to be the first txn to be mined.
Each bot tries to outbid the other by increasing the tip ($) to the miner in order to be the first txn in the block.