Tom Schmidt, junior partner at Dragonfly Capital, talks about how liquidators are making money in DeFi — on which protocols, how liquidations work, and how much money they’re making. He also discusses how liquidators do their work, how easy it is to create a bot to watch for liquidation opportunities, and how competitive the space is. We also discuss the growing competitive pressures, both from other liquidators as well as savvier borrowers.
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Episode links:
Tom Schmidt: https://twitter.com/tomhschmidt
Dragonfly Capital: https://www.dcp.capital
Tom’s post on Liquidations in DeFi: https://medium.com/dragonfly-research/liquidators-the-secret-whales-helping-defi-function-acf132fbea5e
Unchained interview on Compound: https://unchainedpodcast.com/how-youll-earn-interest-on-your-crypto-with-compound-ep-82/
Unchained interview on MakerDAO, pt. 1: https://unchainedpodcast.com/rune-christensen-of-makerdao-part-1-how-to-keep-a-crypto-collateralized-stablecoin-afloat/
Unchained interview on MakerDAO, pt. 2: https://unchainedpodcast.com/rune-christensen-of-makerdao-part-2-how-dai-stayed-at-1-while-eth-crashed-from-1400-to-85/
Unchained interview on dYdX: https://unchainedpodcast.com/how-dydx-allows-you-to-take-a-short-position-in-one-token-ep-86
The links from this week’s news recap: