A contract-side pooled liquidator mechanism for marginfi

Hey guys - was chatting with a few folks about improving the marginfi liquidator network - I wanted to put out a thought I’ve had mulling around for a while:

One of the biggest problems with marginfi liquidators right now is that they’re difficult to spin up and maintain – for a retail user, effectively unusable. However, yield from them is attractive - liquidators on marginfi have cleared 2x returns just over the last couple weeks (that’s in absolute terms, not annualized - annualized that number gets really crazy).

I’d like to find a way to make these returns accessible to the average person, which would in turn increase the capital behind liquidations significantly (I’d like to target $10M to start here).

We can do this contract side - an auxiliary smart contract to marginfi that would

  • allow users to deposit their capital, which will be used for liquidations
  • be cranked (or similar) to liquidate marginfi accounts exposed for liquidations
  • allow users to passively earn that liquidation premium yield

Before incentives, I think this would be one of the highest-yielding vaults in DeFi right now - and would be an incredible hedge for market volatility (since liquidations make the most money during volatile times). This would also be a vault that supports stables by default, so this would be yield you’re earning on stables - for those that don’t want to take delta risk right now.

The biggest thing I’m looking for is resources to work on this with – I think there’s a grant opportunity from mrgn for this, but the core team is pretty strapped for resources and community help could catalyze the timeline here significantly.

Anyone down to scope this out with me?


This sounds very interesting, but it’s out of my league. Love the forward thinking and hopefully someone from the community can come through and help assist.

Edgar, we do have a team and willing to build this! Can we have a word over TG (@Deja_vu1157) or Twitter @mauri_xyz to discuss this through?

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I am interested in something like this. I wanted to setup the liquidator but had no idea what I was doing lol


just catching up to this - will dm!