Liquidation Intelligence Protocol Solutions

Solutions that anticipate liquidation risk before markets panic.

LiquidatedLabs packages the Liquidation Intelligence Protocol (LIP) into modular, subscription-based services that scale from individual traders to institutional funds and DAO treasuries. Each tier provides the depth of intelligence needed for effective risk management without unnecessary complexity.

Real-Time Monitoring Layer

Our monitoring infrastructure provides comprehensive cross-chain visibility into DeFi positions with sub-second latency, enabling proactive risk management before liquidation events occur.

Cross-Chain Visibility

Custom blockchain adapters continuously scan Ethereum mainnet, Arbitrum, Optimism, Base, Solana, and additional rollup networks via specialized interpreters. Each adapter is optimized for the specific virtual machine (EVM, WASM) and consensus mechanism, ensuring accurate state tracking.

Ethereum, Arbitrum, Optimism, Base, Solana native support
Lightweight relay architecture for additional chains
Sub-500ms state reconciliation across all networks
Automatic failover and redundancy systems

Protocol Breadth

Comprehensive support for major DeFi protocols including Aave v2/v3, Morpho Blue, Compound v3, Maker vaults, GMX perpetuals, and numerous perp venues ensures that leveraged positions never fall through monitoring gaps.

Aave v2/v3, Morpho Blue, Compound v3 coverage
Maker vault monitoring and DAI stability tracking
GMX and perp exchange position tracking
Rapid integration for new protocol launches

State Normalization

LIP converts protocol-specific health factors, loan-to-value ratios, and liquidation thresholds into normalized risk states that enable meaningful cross-protocol comparisons.

Unified risk state schemas across protocols
Cross-protocol portfolio aggregation
Normalized liquidation threshold calculations
Protocol-agnostic risk scoring

Advanced Risk Engine

The internal computational core projects liquidation probabilities, calculates distance-to-trigger metrics, and estimates time-to-liquidation (ETA) using configurable stress models and probabilistic simulations.

Deterministic Stress Suites

Systematic application of static shocks (-10%, -20%, -30% on collateral valuations) combined with asset-specific liquidity haircuts produces graded warning levels for dashboards and automated bots.

Configurable shock levels (-5% to -50% in 5% increments)
Asset-specific liquidity penalty curves
Scenario bucketing per asset volatility profile
Correlation overlays for systemic market events
Multi-asset collateral basket stress testing

Monte Carlo Simulations

Path-dependent stochastic simulations evaluate how volatility clusters and regime changes affect loan-to-value drift over time. The engine generates thousands of price path simulations per wallet, offering probabilistic liquidation windows with confidence intervals.

Thousands of simulation runs per position
Regime-switching volatility models
Adaptive time steps based on market conditions
Confidence interval calculations
Correlation-aware multi-asset simulations

ETA Forecasting

When liquidation probability crosses configurable thresholds, the engine publishes countdown timers and suggests specific defense actions. Hazard models estimate time-to-threshold-crossing, enabling proactive rebalancing before positions become critical.

Real-time countdown to liquidation threshold
Automated trigger signals for bot execution
Human-readable action recommendations
Multi-threshold alert system (warning, critical, imminent)
Historical accuracy tracking and model calibration

Risk Signals: Multi-Channel Delivery

LiquidatedLabs delivers risk signals through multiple channels optimized for different use cases, from low-latency bot feeds to comprehensive institutional dashboards.

WebSocket and REST API

Low-latency feeds prioritize the most profitable liquidation opportunities and include comprehensive contextual metadata for execution bots. Our API provides sorted candidate lists with profit estimates, gas cost projections, and execution difficulty scores.

Sub-100ms WebSocket message delivery
REST API with pagination and filtering
Profit estimation and gas cost projections
Rate limiting and authentication
Historical data access for backtesting

Institutional Dashboard

Professional-grade user interface showcases portfolio heatmaps, upcoming liquidation windows, cross-chain liquidity health metrics, and risk concentration analysis.

Portfolio-wide risk heatmaps
Upcoming liquidation window visualization
Cross-chain liquidity health indicators
Export capabilities for reporting
Custom alert configuration

Automation and Webhook Integration

Webhook endpoints, PagerDuty integration, Slack notifications, email alerts, and custom hook systems tie risk events directly into existing incident management workflows.

Custom webhook endpoints with retry logic
PagerDuty and Opsgenie integration
Slack channel and direct message alerts
Email notifications with digest options
Custom integration API for proprietary systems

Public Aggregate Metrics

Aggregated indexes highlight systemic stress levels to researchers, journalists, and DAO forums without revealing private wallet information.

System-wide liquidation risk index
Protocol-specific health scores
Historical trend analysis
Privacy-preserving aggregation
Public API for research and media

On-Chain Risk Oracle

LiquidatedLabs publishes batched risk scores to on-chain oracle contracts at configurable intervals (every N seconds) or when event thresholds are crossed. This enables smart contract-based automated responses to systemic risk.

System Readiness Signals

Protocol integrators subscribe to oracle updates that automatically adjust loan-to-value ratios, toggle emergency modes, throttle emissions, or activate circuit breakers.

Automatic LTV adjustment triggers
Emergency mode activation signals
Emission throttling recommendations
Circuit breaker activation
Multi-protocol coordination

DAO-Grade Transparency

Proof-of-risk updates include cryptographic signatures, model versioning, and public changelogs that help governance prove responsiveness to community auditors.

Cryptographically signed risk updates
Model versioning and changelogs
Public audit trails
Governance proposal integration
Community verification tools

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