Transform liquidation chaos into predictable, governed processes. LiquidatedLabs builds the Liquidation Intelligence Protocol (LIP) — a comprehensive real-time analytics layer that continuously observes DeFi positions across multiple blockchain networks, simulates liquidation probabilities using advanced mathematical models, and broadcasts machine-readable risk signals.
We believe liquidations should be orchestrated, not feared. LiquidatedLabs turns early warning systems, probabilistic simulations, and automation into a unified intelligence stack for DeFi that enables proactive risk management at both individual and systemic levels.
Our advanced Monte Carlo simulation engine generates thousands of probabilistic price paths to quantify how quickly a borrower position drifts toward liquidation. Combined with deterministic stress tests (-10%, -20%, -30% collateral shocks) and ETA projections, we provide quantifiable risk metrics that enable proactive decision-making before liquidation events occur.
Protocol-facing risk oracles push real-time red-zone alerts directly to on-chain governance systems, enabling DAO governors to automatically adjust loan-to-value (LTV) ratios, pause specific markets, or activate emergency protocols. This creates a safety net that protects the entire protocol ecosystem from cascading liquidation events.
Our API and dashboard systems maintain feature parity, ensuring that professional traders, risk management teams, and autonomous liquidation bots all receive the same actionable signals simultaneously. This alignment prevents information asymmetry and creates a level playing field for all market participants.
LIP is a composable, modular stack covering real-time monitoring, advanced risk computation, and multi-channel signal delivery. Each layer is designed for maximum reliability, explainability, and integration flexibility.
Custom blockchain adapters continuously watch major DeFi protocols including Aave v2/v3, Morpho Blue, Compound v3, Maker vaults, GMX perpetuals, and numerous perp venues across rollups and Layer 1 networks. Live health factors, loan-to-value ratios, collateral liquidity metrics, and oracle price feeds are streamed per wallet with sub-500ms latency. Our normalization engine converts protocol-specific metrics into unified risk states for cross-protocol analysis.
Internal computational models evaluate proximity to liquidation thresholds, apply configurable stress deltas (-10%, -20%, -30% on collateral), and simulate probability distributions using Monte Carlo methods. The engine calculates distance-to-trigger metrics, estimates time-to-liquidation (ETA), and generates confidence intervals for each prediction. All calculations include full lineage tracking for auditability and explainability.
Ranked alert feeds prioritize the most profitable liquidation opportunities. WebSocket streams deliver low-latency data to execution bots. Professional dashboards provide portfolio heatmaps and risk visualizations. Webhook integrations connect to Slack, PagerDuty, and custom incident management systems. Public aggregate metrics enable research and transparency without exposing private wallet information.
Periodically publishes aggregated risk scores, systemic health indicators, and protocol-specific threat levels directly to on-chain oracle contracts. This enables smart contracts to automatically trigger defensive mechanisms such as LTV adjustments, emergency pauses, or automated rebalancing. All oracle updates are cryptographically signed and include proof-of-risk calculations for governance transparency.
LiquidatedLabs is the DeFi risk laboratory building machine intelligence for liquidations, liquidity management, and systemic stability in Web3. We envision a future where liquidation events are predictable, manageable, and even beneficial for ecosystem health rather than sources of panic and loss.