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Fee distributions for Wild Credit

Description

Wild Credit earns fees on the interest rate spread. The interest paid by borrowers is partly earned by the LPs and partly by the protocol. Namely, by the feeReceiver contract.

These fees need to be converted to WILD and sent to the xWILD contract periodically.

The conversion function has a caller incentive. If the incentive to call the function exceeds the gas cost, there is a MEV opportunity.

Difficulty

Low

Is this a one-off opportunity or is it reoccurring?

This can likely be performed daily or as the TVL grows, even multiple times per day.

Steps to capture MEV

  1. Load a list of the top 20 holders of both LP tokens for a given lending pair.
  2. Check their pendingSupplyInterest
  3. If it's high enough, call accrueAccount which will distribute their accrued interest to the feeRecipient
  4. After getting enough accrued interest, call convert function on feeRecipient

Alternatively, just call convert on the feeRecipient if it has enough fees already in it without adding more pending fees by accruing individual accounts.

Other

Current feeRecipient contract can be found in the controller

Read Wild Credit docs for more details: https://wild-credit.gitbook.io/wild-credit/

Website: https://wild.credit

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