diff --git a/CHANGELOG.md b/CHANGELOG.md
index 09c4a518ab..ac77ef645a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -48,6 +48,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Features
 
+- [21XX](https://github.com/umee-network/umee/pull/21XX) Allow `MsgLeveragedLiquidate` to auto-select repay and reward denoms if request fields left blank.
 - [2114](https://github.com/umee-network/umee/pull/2114) Add borrow factor to `x/leverage`
 - [2102](https://github.com/umee-network/umee/pull/2102) and [2106](https://github.com/umee-network/umee/pull/2106) Add `MsgLeveragedLiquidate` to `x/leverage`
 - [2085](https://github.com/umee-network/umee/pull/2085) Add `inspect` query to leverage module, which msut be enabled on a node by running with `-l` liquidator query flag.
diff --git a/x/leverage/keeper/keeper.go b/x/leverage/keeper/keeper.go
index b11563e5c2..19de4d66fe 100644
--- a/x/leverage/keeper/keeper.go
+++ b/x/leverage/keeper/keeper.go
@@ -372,6 +372,21 @@ func (k Keeper) Liquidate(
 func (k Keeper) LeveragedLiquidate(
 	ctx sdk.Context, liquidatorAddr, borrowerAddr sdk.AccAddress, repayDenom, rewardDenom string,
 ) (repaid sdk.Coin, reward sdk.Coin, err error) {
+	// If the message did not specify repay or reward denoms, select one arbitrarily (first in
+	// denom alphabetical order) from borrower position. Then proceed normally with the transaction.
+	if repayDenom == "" {
+		borrowed := k.GetBorrowerBorrows(ctx, borrowerAddr)
+		if !borrowed.IsZero() {
+			repayDenom = borrowed[0].Denom
+		}
+	}
+	if rewardDenom == "" {
+		collateral := k.GetBorrowerCollateral(ctx, borrowerAddr)
+		if !collateral.IsZero() {
+			rewardDenom = types.ToTokenDenom(collateral[0].Denom)
+		}
+	}
+
 	if err := k.validateAcceptedDenom(ctx, repayDenom); err != nil {
 		return sdk.Coin{}, sdk.Coin{}, err
 	}
diff --git a/x/leverage/keeper/msg_server_test.go b/x/leverage/keeper/msg_server_test.go
index 859e73995a..62931a5b46 100644
--- a/x/leverage/keeper/msg_server_test.go
+++ b/x/leverage/keeper/msg_server_test.go
@@ -2226,11 +2226,11 @@ func (s *IntegrationTestSuite) TestMsgLeveragedLiquidate() {
 			coin.New("u/"+atomDenom, 3_527933),
 			nil,
 		}, {
-			"close factor < 1",
+			"close factor < 1 with auto-selected repay and reward denoms",
 			liquidator,
 			closeBorrower,
-			umeeDenom,
-			umeeDenom,
+			"",
+			"",
 			coin.New(umeeDenom, 8_150541),
 			coin.New("u/"+umeeDenom, 8_965596),
 			nil,
@@ -2248,7 +2248,22 @@ func (s *IntegrationTestSuite) TestMsgLeveragedLiquidate() {
 			_, err := srv.LeveragedLiquidate(ctx, msg)
 			require.ErrorIs(err, tc.err, tc.msg)
 		} else {
-			baseRewardDenom := types.ToTokenDenom(tc.expectedReward.Denom)
+			// borrower initial state
+			biBalance := app.BankKeeper.GetAllBalances(ctx, tc.borrower)
+			biCollateral := app.LeverageKeeper.GetBorrowerCollateral(ctx, tc.borrower)
+			biBorrowed := app.LeverageKeeper.GetBorrowerBorrows(ctx, tc.borrower)
+
+			// adjust test case in empty-input scenarios, while preserving the msg
+			if msg.RepayDenom == "" {
+				if !biBorrowed.IsZero() {
+					tc.repayDenom = biBorrowed[0].Denom
+				}
+			}
+			if msg.RewardDenom == "" {
+				if !biCollateral.IsZero() {
+					tc.rewardDenom = types.ToTokenDenom(biCollateral[0].Denom)
+				}
+			}
 
 			// initial state (borrowed denom)
 			biUTokenSupply := app.LeverageKeeper.GetAllUTokenSupply(ctx)
@@ -2256,12 +2271,7 @@ func (s *IntegrationTestSuite) TestMsgLeveragedLiquidate() {
 
 			// initial state (liquidated denom)
 			liUTokenSupply := app.LeverageKeeper.GetAllUTokenSupply(ctx)
-			liExchangeRate := app.LeverageKeeper.DeriveExchangeRate(ctx, baseRewardDenom)
-
-			// borrower initial state
-			biBalance := app.BankKeeper.GetAllBalances(ctx, tc.borrower)
-			biCollateral := app.LeverageKeeper.GetBorrowerCollateral(ctx, tc.borrower)
-			biBorrowed := app.LeverageKeeper.GetBorrowerBorrows(ctx, tc.borrower)
+			liExchangeRate := app.LeverageKeeper.DeriveExchangeRate(ctx, tc.rewardDenom)
 
 			// liquidator initial state
 			liBalance := app.BankKeeper.GetAllBalances(ctx, tc.liquidator)
@@ -2276,7 +2286,7 @@ func (s *IntegrationTestSuite) TestMsgLeveragedLiquidate() {
 
 			// final state (liquidated denom)
 			lfUTokenSupply := app.LeverageKeeper.GetAllUTokenSupply(ctx)
-			lfExchangeRate := app.LeverageKeeper.DeriveExchangeRate(ctx, baseRewardDenom)
+			lfExchangeRate := app.LeverageKeeper.DeriveExchangeRate(ctx, tc.rewardDenom)
 
 			// borrower final state
 			bfBalance := app.BankKeeper.GetAllBalances(ctx, tc.borrower)