Price Impact Analysis

The potential price impact of liquidations is quantified using on-chain data, which is continuously fed into the model.

This data provides the percentage price impact for buy or sell Jupiter swaps of various USD sizes, i.e., using best price execution constrained to a single transaction (which has limited routes due to the maximum number of compute units allowed).

Furthermore, the analysis uses data that allows for a more expansive optimal execution algorithm, with more routes and not limited to a single transaction. This gives a more reliable indication of the price impact suffered on liquidations.