NFT Collateral Liquidation Executor

WHAT IT DOES

NFT Collateral Liquidation Executor lets you liquidate undercollateralized NFT-backed loans, paying off the borrower's debt and claiming their collateral NFTs as a liquidator reward. When an NFT-backed loan falls below the required loan-to-value ratio (typically due to a drop in NFT price), the loan becomes eligible for liquidation. Instead of manually checking each loan's health and submitting separate liquidation transactions, you add the loan IDs you want to liquidate, verify their eligibility, and execute a batch liquidation transaction. This is essential for DeFi participants looking to profit from liquidations by acquiring NFTs at a discount.

HOW TO USE

Connect your EVM wallet and select the network. Enter the lending contract address where the loans were originated. In the input area, list the loan IDs you want to liquidate (one per line). Click "Add loans" to load them, then click "Check loans" to verify each loan's liquidation eligibility—the tool checks whether the loan exists, is not repaid, and is flagged as liquidatable by the contract. Review the status, then click "Liquidate loans" to execute the liquidation transaction. The tool pays off the outstanding debt (principal + interest) and claims the collateral NFTs to your wallet.

TECHNICAL MECHANISM

The tool first queries the lending contract for each loan ID using a view function that returns the borrower, principal, interest, due date, and repayment status. It also calls isLiquidatable() to confirm that the loan is eligible for liquidation. It filters for loans that are active, not repaid, and flagged as liquidatable. It then calculates the total repayment amount as the sum of principal and interest for each liquidatable loan. The tool verifies that the wallet has sufficient native balance to cover the total repayment, then calls the lending contract's liquidate() function for each loan, sending the repayment amount as value. The lending contract transfers the repayment, marks the loan as liquidated, and transfers the collateral NFTs to the liquidator's wallet. The tool uses receipt.effectiveGasPrice for accurate gas reporting and provides progress feedback during the liquidation process.

WHAT IT CANNOT SEE

This tool cannot liquidate loans that are not eligible for liquidation (i.e., loans that are above the liquidation threshold or already repaid)—eligibility is verified before proceeding. It relies on the lending contract supporting liquidation via its contract interface; contracts that use non-standard liquidation mechanics (e.g., requiring approval of a token, using a different function signature) are not supported. The tool cannot guarantee the value of the collateral or the profitability of the liquidation—NFT prices are volatile and liquidation rewards may be lower than expected.

PLEASE NOTE

Liquidation requires paying off the outstanding debt in native currency (ETH, BNB, etc.). Ensure you have sufficient native tokens to cover the repayment. The lending contract must be trusted; verify its security and audit status before use. This tool is for EVM chains only and does not support non-EVM networks.