Cryptoassets have continued to gain in popularity and liquidity. With the rise of virtual currencies comes the need for safe custody solutions. Exchanges are the most popular way to buy and sell crypto assets. However, they are not always the most secure. More people are starting to store their crypto assets in their digital wallets. However, there are no perfect solutions. Users need to strike a balance between security, cost, and convenience.
With the emergence of decentralized exchanges, users can now take advantage of decentralized trading. Instead of trading through a central authority like an exchange, users can now trade peer-to-peer on a decentralized exchange. Not only does this reduce the risk of hacking, it also reduces the opportunity for fraud.
With automated strategies, DeFi Saver announced a major update to its flagship automation service. DeFi automation marks the beginning of a new era, aiming to provide a safer and more convenient environment for all decentralized finance users.
MakerDAO users can now farm yield protocols such as Yearn, mStable and Rari with virtually no liquidation risk using this new automated strategy.
A new savings liquidation protection strategy automatically repays the owners’ debt with stablecoin assets provided through the yield protocols. For automated liquidation protection, users had to sell part of their collateral, which was bittersweet. Even if you sold, you would still lose less than if you liquidated – but selling is never ideal.
Finally, MakerDAO users can now use the long-awaited and highly sought-after ‘stop loss’ strategy. MakerDAO users can now access these essential market order types through the DeFi Saver dashboard together with the ‘take profit’ strategy. Several additional protocols will be added shortly.
Once the trigger conditions are met, each automated strategy’s actions are triggered from various integrated protocols. Taking profit and stop-loss strategies will use a price trigger to execute necessary actions to close a CDP. Rather than using MakerDAO’s oracles, DeFi Saver decided to use Chainlink’s.
Closing the MakerDAO CDPs also means shutting down Maker’s Dai stablecoin. CDPs to close the supplied collateral will be available shortly.
The first phase of the new service provides users with pre-made team-built strategies. The ultimate goal is to allow users full customization and creation of their own unique automated strategies for DeFi investing and position management.
The team behind DeFi Saver pioneered automated liquidation protection and leverage management in decentralized finance back in 2019 with the release of the CDP automation, a non-custodial and trustless service for protecting MakerDAO positions against liquidation. After initial support for MakerDAO, the service was expanded to Compound and Aave protocols, with continuous gas usage optimizations.
A more general approach that would allow for a wide variety of strategies combining different triggers with actions from various DeFi protocols was always the goal, and it required an architectural overhaul. The stage was set with modular smart contracts that allowed users to create numerous combinations of various actions from multiple DeFi protocols to execute manually. The last necessary step was the creation of a framework that would enable automating those combinations, which the team put in place now.
DeFi Saver introduced an all-new automation UI that showcases available pre-made strategies with the release.
Given the importance of a non-custodial and trustless approach to decentralized finance, security was the number-one priority, especially concerning automated services. The Dedaub team fully audited the new update.
As new automated strategies become available, you can expect many more in the future with expanded protocol support. As part of the plan to make DeFi Saver power tools more accessible to retail users, the team is also actively working on expanding support for layer two solutions, such as Arbitrum and Optimism.
Connect your non-custodial wallet if you’d like to try DeFi Saver or any of its features.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
