Aave liquidation builder opens its V3/V4 bot mechanics

A builder has published a detailed account of an Aave V3 and V4 liquidation system running across EETH$2,407.10▼1.95% Ethereum, Arbitrum, and Base. The Aave Governance Forum post covers position monitoring, oracle handling, and transaction-routing choices — giving borrowers and competing liquidators a look at the machinery behind Aave liquidations.

Position health is computed entirely offline. On a price update, the system evaluates roughly 19,000 positions in milliseconds, per the post. It also decodes Chainlink Smart Value Recapture (SVR) updates as parameters, folding the oracle update into the bot’s decision process rather than treating it as a black box.

The workflow, as described, can identify actionable positions very quickly after a price move. Competing liquidators, reading the same post, now know the post describes this bot as using fast off-chain screening before anything touches the chain. What the post doesn’t give you: contract addresses, configuration parameters, or wallet identifiers.

Execution splits across four paths. Atlas handles Arbitrum and Base. MEV-Share covers Ethereum. The system also supports direct execution and Timeboost via Kairos on Arbitrum. No performance comparison across the four paths is provided.

The auction economics show up most clearly in one traced example. The winning liquidator paid a portion of extracted value to the block builder and kept under $2. The post does not state the gross extracted amount or position size, so a full calculation of the auction’s value is not supported by the available data. The traced example shows one auction in which value was divided between the winner and a block builder.

The post does not establish the timing of any specific borrower’s liquidation, and the gross proceeds and position sizes involved are unknown.

Ethereum was up 2.2% over the prior 24 hours at $2,501.1, per CoinGecko. Using the reported 2.2% 24-hour rise, the implied price 24 hours earlier was about $2,447.3: $2,501.1 ÷ 1.022. That implies a roughly $53.8 increase, although the price move is not evidence that it caused any liquidation. The post does not attribute any specific liquidation or auction outcome to that move.