Introduction

Folks Finance has a variety of assets (and fAssets) to be used as collateral and/or borrowed.
Their pool/app_ids and corresponding asset_ids can be looked up in the documentation.
A borrow first needs to deposit collateral, which grants the depositor equivalent fassets. These fassets can then be used to open a loan/borrow position.
Official Website. Image/Logo sourced from the website!

Dashboard Objectives

The dashboard will be taking a look at the liquidations that have taken place on Folks Finance protocol since inception.
It will attempt to derive insights based on the collateral and the borrowed assets used in the positions that got liquidated.
It will also explore the profits netted by the liquidators and the protocol(if any).

Whenever the loan/borrow position’s health/LTV ratio falls below/equal to the liquidation thresholds specified as per the documentation, a liquidator can invoke the position to be liquidated.
The liquidator pays the principal borrowed ( and any leftover interest ) and takes over the collateral used to open the position.
The liquidator’s incentive/profit is the difference between the value of collateral liquidated and the total amount paid by the liquidator for the position.

With the app_ids of the pools in-hand, we can use the following filter:

TRY_BASE64_DECODE_STRING(tx_message:txn:apaa[0]::STRING) = ‘l’

on the flipside_prod_db.algorand.application_call_transaction table. This yields us all the tx_group_ids
Once we have the tx_group_ids, we traverse all the related transactions in the group, and derive our required fields for each liquidation group using flipside_prod_db.algorand.transactions table.
We also utilize the following tables:
- flipside_prod_db.algorand.prices_swap: To map hourly prices of the assets when the liquidations occur.
- flipside_prod_db.algorand.asset: To fetch asset_names for the corresponding asset_id.
A sample liquidation event is shared below!

The dashboard uses the ‘REKT’ terminology to reference:
- the liquidations as REKTs
- the liquidators as REKTors, etc.
As popularised by the BITMEX bots/feed.
All fAssets are resolved back to their tethered/original assets for sake of simplicity.
Additionally, prices/profit computations might vary as the dashboard uses the hourly average prices of an asset.

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REKT COUNTS
- We look at the daily count of liquidations that happen, split by the collateral used as well as the position/asset borrowed.
  
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- The majority count of positions liquidated had:
  - ALGO as collateral.
  - USDC as a borrowed asset.
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- We see peaks on May 11th and 26th, turbulent market days!
REKT VOLUME
- We look at the daily VOLUME of liquidations that happen in USD value, split by the collateral used as well as the position/asset borrowed.
  
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- The majority volume of positions liquidated had:
  - gALGO as collateral.
  - USDC as a borrowed asset.
    
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- We only see a Volume peak on May 11th whereas the counts had a peak on 26th too…
- This implies the volume on May 26th was too low!
REKT VOLUME (CUMULATIVE)
- This chart doesn’t really add new inferences which we didn’t already gather above.
- But it’s great to look at! 😎

We take a glance at the profits reaped by the liquidators
The highest payday for the liquidators is also the highest liquidation volume day!

We take a look at the high-level stats of the liquidations that have happened.
gALGO collateral has BOTH the highest total & average liquidated volume!
The majority uses only gALGO & ALGO as collateral
- The rest of the options as rarely used.

We take a glance at the biggest losers 💣💣 and the profiteers 💸💸!
Coincidentally, the biggest collateral losses are where the big profits are made too!
There are liquidations where the liquidators have made off higher percentage_returns per position though the volume amount quite lower.