DeFi Liquidation Monitor

Purpose

Track wallet or protocol positions that can be liquidated, estimate distance-to-liquidation, and rank urgent mitigation actions.

Use this skill when

• The user asks for liquidation watchlists.
• The user wants stress tests for collateral price drops.
• The user needs priority ranking for risky borrow positions.

Workflow

1. Collect normalized borrow position data (collateral USD, debt USD, liquidation threshold, health factor if available).
2. Compute liquidation metrics using references/formulas.md.
3. Classify severity bands from references/alert-bands.md.
4. Run stress scenarios (for example: -5%, -10%, -20% collateral move).
5. Return ranked watchlist with recommended actions.

Required output format

{
  "snapshot_time": "ISO-8601",
  "positions": [
    {
      "position_id": "string",
      "protocol": "string",
      "chain": "string",
      "collateral_usd": 0,
      "debt_usd": 0,
      "liquidation_threshold": 0,
      "health_factor": 0,
      "distance_to_liquidation_pct": 0,
      "severity": "critical|elevated|watch|ok",
      "stress_results": [
        {
          "collateral_shock_pct": -0.1,
          "post_shock_health_factor": 0
        }
      ],
      "recommended_action": "string"
    }
  ],
  "summary": "2-4 sentence summary"
}

Bundled resources

• references/formulas.md: Core lending liquidation formulas.
• references/alert-bands.md: Severity thresholds.
• scripts/liquidation_buffer.py: Deterministic stress calculations.
• assets/watchlist-template.csv: Starter watchlist layout.