New DeFi Automated Strategies For MakerDao Users To Farm Yield Protocols Yearn, mStable & Rari

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makerdao yield protocols

Cryptocurrency trading is a high-risk activity. While many traders exist to make a profit, there are also many who lose their money. The cryptocurrency market is volatile, meaning the price of a given digital asset can change suddenly and dramatically. Whether you’re a day trader looking to make a small profit or a long-term investor, taking profits and limiting losses is critical to your long-term success in the market. In this article, we’ll go over how to take profits and stop loss in MakerDao vaults.

The new Automated Strategies feature of DeFi Saver’s flagship Automation service is a major update.DeFi automation is beginning in this update, with the aim of providing a safer and more convenient environment for all users of decentralized finance.

With MakerDAO users’ first new automated farming strategy, they can farm yield protocols such as Yearn, mStable, and Rari without having to incur any liquidation risks.

A new Savings Liquidation Protection strategy automatically repays the owner’s debt by supplying stable coin assets as per the yield protocols mentioned above.For automated liquidation protection, historically, users had to sell part of their collateral. Even though the losses would be drastically lower than liquidation, selling is not always desirable.

The highly anticipated and highly sought-after Stop Loss strategy is finally available, much to the delight of MakerDAO users. 

MakerDAO users can now access these market order types through the DeFi Saver dashboard along with the Take Profit strategy. Support for other integrated protocols is coming in the following period.

Each automated strategy consists of triggers and actions from various integrated protocols executed once the trigger conditions are met.Taking Profit and Stop Loss strategies require a price trigger to execute the necessary steps to close a CDP. DeFi Saver decided to use Chainlink oracles to update the price trigger rather than MakerDAO’s.

The newly released strategies also include a critical element: Closing MakerDAO CDPs will close them to Maker’s Dai. We will shortly be able to close the CDPs for the supplied collateral.

As part of the new service, users will receive premade, team-built strategies. User-customized, automated strategies for DeFi investing and position management are the ultimate goal.DeFi Saver, a non-custodial and trustless service designed to protect MakerDAO positions from liquidation, pioneered automated liquidation and leverage protection in decentralized finance back in 2019.

The service was expanded to support Compound and Aave protocols, allowing continuous gas consumption optimization.

It was always the goal to develop a general approach that would allow for a variety of strategies that combine different triggers with actions from different DeFi protocols, and this required a major architectural overhaul.

Modular smart contracts provided users with the ability to combine various actions from multiple DeFi protocols manually.

A framework needed to be created to automate those combinations, which the team is currently putting in place.DeFi Saver introduced an all-new Automation UI that showcases available premade strategies with the release.

Because decentralized finance is a non-custodial, trustless approach, security is the no. 1 priority, particularly in the area of automated services. A full audit of the update was conducted by the Dedaub team.

In the following period, you will be able to expect many more new automated strategies with expanded protocol support.

As part of the plans to make DeFi Saver power tools more accessible to retail users, the team is also re-engaging with Layer 2 solutions, including Arbitrum and Optimism. For a free trial of DeFi Saver or any of its features, connect your non-custodial wallet and begin managing your DeFi assets.  

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Chris Munch

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.