So, when it comes to liquidations, how much value are we talking about? Firstly, transparent liquidation data is never communicated by liquidators. The extent of the returns generated requires significant research and a sophisticated ability to scrape and interpret blockchain data, which is expertise that the team behind Minterest certainly has. Competitors publicly state that their protocols earn up to $3M a week in liquidations, and some liquidators to date have earned in excess of $50M.
What’s indisputable is that total annualised fees in DeFi are currently measured in the hundreds of millions. If a protocol’s general community were able to share in this value, ordinary users would have realised significant benefits as opposed to only a small pool of wealthy liquidators. Eliminating this practise is what the Minterest protocol is about, creating a fair and equitable system for all its community.