> For the complete documentation index, see [llms.txt](https://docs.curvance.com/app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.curvance.com/app/protocol-overview/application-specific-sequencing.md).

# Application Specific Sequencing

## **Application Specific Sequencing in Curvance**

The Curvance protocol introduces a MEV-optimized system for handling liquidations, built to prioritize Chainlink-supported oracle infrastructure where available. The system integrates application-specific sequencing with orderflow auctions, allowing liquidators to compete for the right to liquidate collateral in Curvance lending markets. 

This gives Curvance a way to capture liquidation value that would otherwise flow to external MEV participants, while keeping liquidations fast, competitive, and aligned with protocol health.

### **Liquidation Characteristics**

Through app-specific sequencing, the protocol captures Maximum Extractable Value (MEV) by organizing liquidation events to maximize efficiency and value for the protocol. Here’s a simple breakdown of how it works:

1. **Orderflow Auctions**: When a liquidation event is triggered, liquidators participate in an auction, bidding for the right to execute the liquidation. This competitive bidding process allows the protocol to receive the transaction validation bid rather than the block builder.
2. **Rapid Execution**: The entire auction process takes just 300 milliseconds (3/10ths of a second), ensuring liquidations occur quickly and with minimal delay.
3. **Fail-Safe Permissionless Liquidation**: If no winning bid is determined or the winning liquidator fails to execute, a permissionless liquidation immediately takes place to protect the protocol’s stability and assets.

### Incentive Capture

Over the last four years, traditional platforms like Compound and Aave have left a combined $180 million in liquidation incentives to MEV searchers. Historically, 95 - 98% of all incentives are given as incentives to block builders to validate their liquidation first. Curvance’s MEV-optimized system is designed to recover as many incentives as possible through auction revenue, significantly reducing the opportunity cost of liquidations while increasing protocol revenue potential.

### Competitive Edge

With the built-in fallback mechanism, the protocol remains competitive with other DeFi platforms (Lending Protocols, Perpetual Exchanges, Collateralized Debt Positions Protocols, etc.), which may need to liquidate user assets. Curvance can capture MEV without needing an appchain, minimizing costs, enhancing protocol sustainability, and providing a unique advantage for users and liquidators.

<figure><img src="/files/SiwtXUFxRwjPK0f9jCqc" alt="" width="563"><figcaption></figcaption></figure>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.curvance.com/app/protocol-overview/application-specific-sequencing.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.