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DyDx-Liquidations.md

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DyDx Liquidations

DyDx Liquidations succeed because backrunners are quick to exploit the MEV.

To put simply, transaction A is broadcasted with a slightly lower gas price than already pending transaction B so that A gets mined right after B in the same block. (eg. to execute a DyDx liquidation after a price oracle update that triggers a DyDx loan to go under the required collateralization ratio).

Fairly interesting! To learn more about it:

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