Design MEV-protected liquidation mechanisms for lending protocols that ensure fair liquidation execution, prevent liquidation frontrunning, and distribute liquidation surplus to borrowers rather than MEV extractors.
## CONTEXT Liquidation mechanisms in DeFi lending protocols represent one of the largest and most concentrated sources of MEV extraction, with liquidation bots competing through priority gas auctions and builder bribes to capture liquidation bonuses that can reach 5-15% of the liquidated collateral value. On Ethereum…
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