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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Kelman Law:

Episode links: 

Tom Schmidt:

Dragonfly Capital:

Tom’s post on Liquidations in DeFi:

Unchained interview on Compound:

Unchained interview on MakerDAO, pt. 1:

Unchained interview on MakerDAO, pt. 2:

Unchained interview on dYdX:

The links from this week’s news recap: