Become WOWswap Keeper in a few clicks and earn liquidation rewards!

When traders buy tokens with leverage on WOWswap they borrow additional capital from liquidity providers and leave the purchased tokens as collateral against their loans. If the token prices go up, traders can receive amplified profits 🤑, but if the token prices go down, leveraged positions could be liquidated 🥵. The liquidation process is a “necessary 👿” because if a money-loosing position is not closed on time, then liquidity providers can lose their funds.

In WOWswap liquidations are done via a smart contract, which can be called by anyone. When a user (“keeper”) calls the liquidation smart contract, the contract verifies that the unhealthy position can be liquidated, and, if so, liquidates it by selling the underlying tokens. The sale revenue is split among 3 parties: first, the keeper receives a liquidation reward (5% of the position but no more than 10 BNB), then the liquidity pool receives the loan back with the accrued interest, and, finally, if any money is left, the trader who’s position got liquidated receives the rest of funds.

The keeper gets a priority payment because on blockchain smart contracts can not call themselves and need someone to call them and spend ⛽ on their execution. Therefore, keepers play an important role in the protocol’s safety and security.

When many traders open hundreds and thousands of various leveraged positions it is impossible to track and liquidate them manually. Also, markets move very fast 📉💹 and ideally liquidation should happen in the next (or even the same) block when a token’s price drops below the liquidation threshold. Therefore, WOWswap developed a special liquidation bot 🤖, which we are happy to share with our community free of charge.

Setting up and running a blockchain-based software might be a very complex process, but the good news is that our team spent hundreds and hundreds 🤯🤯🤯 man-hours to make the liquidation bot very simple. In fact, you only need to make a few clicks. No programming skills are required. Also, the liquidation bot will be installed not on your laptop/desktop but on a cloud-based application platform Heroku, so your 🤖 will work 24x7 without consuming your electricity and computational resources!

Heroku will charge you $7/ month per bot per network, so if you want to run liquidation bots both on BSC and Polygon you will pay $14/month. Also, to call liquidation transactions you will need to have just a little bit of BNB/Matic on your liquidation wallet to cover the costs of gas. However, you will be able to cover all costs with the first successful liquidation.

So, are you ready to learn some cool stuff and create your first liquidation bot?

No technical knowledge is required. Here is a simple instruction how to create WOWswap liquidation bot in less than 5 minutes!👇

https://github.com/wowswap-io/liquidation-bot

WOWswap is a decentralized leveraged trading protocol that runs on BSC, HECO and Polygon Network. Traders can buy and sell tokens with up to 5X leverage.