Product ecosystem amplifying LIP intelligence.

Beyond the core Liquidation Intelligence Protocol, LiquidatedLabs develops an expanding ecosystem of indices, real-time feeds, automated reports, and automation tools designed to drive adoption of risk-aware Web3 infrastructure across the DeFi landscape.

Liquidity Health Index (LHI)

LHI is a Web3-native volatility barometer that quantifies liquidity stress across protocols, similar to how the VIX index measures market volatility in traditional finance. This macro signal enables ecosystem-wide risk awareness.

Macro Risk Signal

LHI aggregates multiple risk factors into a single, easy-to-understand index that reflects the overall health of DeFi liquidity. When LHI rises, it indicates increasing systemic stress and potential for cascading liquidations. The index is calculated in real-time and published publicly to enable community awareness and governance decision-making.

Comprehensive Input Factors

The index incorporates multiple data sources to provide a holistic view of DeFi health:

  • Loan-to-value ratio drift across all monitored protocols
  • Oracle price divergence and staleness indicators
  • Collateral concentration risk in major protocols
  • Stablecoin peg resilience and de-pegging events
  • Cross-protocol correlation during stress events
  • Liquidation event frequency and severity

Diverse Use Cases

LHI serves multiple stakeholders in the DeFi ecosystem. Risk management desks adjust leverage allowances based on LHI levels. Research teams use LHI to benchmark DeFi climate conditions over time. Media outlets cite LHI in market recaps to provide context for market movements. Protocol governance committees reference LHI when making risk parameter decisions.

DeFi Liquidation Feed (DLF)

A comprehensive real-time ticker of live liquidations across the DeFi ecosystem, enriched with profitability metrics, execution hints, and historical replay capabilities for strategy development.

Real-Time Liquidation Ticker

Continuous stream of live liquidations from Aave, Compound, GMX, perp venues, and exotic protocols, enriched with profitability metrics, gas cost estimates, and execution difficulty scores. Each liquidation event includes full context: position size, collateral type, debt amount, liquidation bonus, and estimated profit for liquidators.

Execution Assistance Tools

The feed provides actionable intelligence for liquidation execution:

  • Slippage-aware routing hints for optimal execution paths
  • Collateral auction snapshots with bidding opportunities
  • Historical replay functionality for strategy backtesting
  • Gas price optimization recommendations
  • Multi-protocol arbitrage opportunity identification
  • MEV protection strategies for large positions

Community and Media Integration

Open feed widgets enable DeFi media outlets, research newsletters, and educational platforms to embed live liquidation data. This broadens community awareness and helps educate users about liquidation mechanics. The feed is available through both public API endpoints and embeddable widgets that can be integrated into any website.

Protocol Risk Reports

Automated, comprehensive risk intelligence reports designed for DAO treasuries, exchange listings, custodians, and insurers who need detailed risk analysis for due diligence and governance decisions.

Automated Intelligence Generation

DAO-ready PDF reports and secure data rooms detail exposure levels, protocol dependencies, and scenario matrices per protocol. Reports are generated automatically on a schedule or on-demand, ensuring stakeholders always have current risk intelligence. Each report includes executive summaries, detailed analysis, and actionable recommendations.

Comprehensive Report Contents

Each risk report includes:

  • Counterparty risk mapping and dependency analysis
  • Collateral decay models under various stress scenarios
  • Governance action checklists for risk mitigation
  • Historical liquidation event analysis
  • Protocol-specific risk parameter recommendations
  • Cross-protocol correlation risk assessment
  • Regulatory compliance considerations

Target Audience and Use Cases

Treasury committees use reports for allocation decisions and risk budgeting. Exchange listing teams leverage reports for due diligence on token projects. Custodians reference reports when evaluating custody solutions. Insurers use reports to assess coverage requirements. All reports are designed to meet institutional standards for risk documentation.

Automation Suite

Comprehensive automation tools that enable proactive risk management, from defense playbooks to arbitrage strategies and user protection mechanisms.

Defense Playbooks and Automation

Pre-built automation blueprints that automatically execute deleveraging, collateral swaps, or emergency shutdowns when triggered by LIP alerts. These playbooks are customizable to match specific risk tolerance levels and can be integrated with existing treasury management systems. Each playbook includes safety checks and confirmation steps to prevent unintended actions.

  • Automated deleveraging strategies
  • Collateral rebalancing automation
  • Emergency shutdown protocols
  • Multi-wallet coordination

Arbitrage and Rebalancing Tools

Bot recipes that connect liquidation opportunities to hedging strategies, arbitrage execution, and treasury rebalancing. These tools enable sophisticated trading strategies that capitalize on liquidation events while maintaining portfolio risk targets. Integration with major DEXs and CEXs enables seamless execution across venues.

  • Liquidation-to-arbitrage pipeline
  • Automated hedging strategies
  • Treasury rebalancing automation
  • Cross-protocol position optimization

User Protection Mechanisms

Safety buffers, automatic collateral refills, and delegated liquidation coverage protect long-tail wallet users who may not have the technical expertise or time to monitor positions continuously. These protection mechanisms can be activated on a per-wallet basis and include customizable thresholds and notification preferences.

  • Automatic collateral top-up systems
  • Delegated liquidation coverage
  • Safety buffer management
  • User-friendly notification systems
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