DeFi Saver: Unlocking the next era of DeFi automation
As the reach of blockchain technology gains momentum, a plethora of blockchain platforms with a wide range of services and products have sprung up. However, only a handful of these platforms have the technology to provide customers with a unique experience, allowing them to stand out.
DeFi Saver is one such platform offering a one-stop asset management tool for a range of decentralized financial protocols and applications on Ethereum.
What is DeFi Saver?
DeFi Saver is an application that integrates multiple lending protocols and provides users with advanced management features and options that let users handle complex tasks in one transaction. The platform is an asset management application for decentralized finance (DeFi) protocols, focused on creating, managing, and tracking all sorts of positions.
Historically, DeFi Saver has been used for borrowing, leveraging, and yield farming with users choosing different integrated lending protocols based on their preferences.
For example, a user who wants to long ETH or BTC, would come to DeFi Saver and create a leveraged collateralized debt position in MakerDAO, Aave, or Liquity (or any other of the integrated protocols) hoping that the market goes up. Using the advanced dashboard, the user deposits ETH as collateral and borrows stablecoins as a debt, then swaps the stablecoins for more ETH and deposits additional ETH as collateral in a single transaction.
This way the user can conveniently collect profits once the value of ETH goes up and close out the position with the ETH that was collateralized in the first transaction, thus walking out with an increased amount of ETH compared to what was initially entered.
In 2019 the famous application pioneered automated options for decentralized finance with the release of DFS Automation, a signature automated leverage management system. Initially released for MakerDAO only, DeFi Saver expanded its service to Compound and Aave the following year, together with a major technical update in 2020 that introduced the use of flash loans for leverage management, alongside continuous optimizations for reduced gas usage and more.
The flagship service is a unique, non-custodial, trustless system for automatic liquidation protection and leverage management of DeFi positions. Users can input their desired collateral and debt ratio and Automation takes care of the rest. It actively monitors debt positions and automatically increases or decreases leverage when the price of the underlying collateral changes increasing user exposure in positive market conditions or preventing liquidation and loss of funds in the opposite direction. To pay off the debt automatically the application sells part of the collateral to decrease exposure or acquires more depending on the provided ratio.
This year the platform introduced automated liquidation protection using funds in yield farms and their first automated strategy connected MakerDAO with yield farming protocols such as mStable or Yearn, and also any other that gets integrated into the Smart Savings dashboard later on.
Compared to their historically popular liquidation protection through automated repays, there is no selling of the collateral here. As soon as the set threshold is achieved, the stable assets supplied into any of the listed protocols can be withdrawn and used to pay back a portion of the debt and avoid liquidation automatically, without the need for any additional input from the users.
DeFi Saver also introduced an overhauled automation center that provides users quick access to all available automated strategies for their positions, as well as a better overview of currently enabled strategies. To ensure top-level security, all new automation smart contracts are fully audited by Dedaub, the platform’s continued partners and rising stars on the smart contracts security scene.
Stop loss for liquidity troves
A unique feature offered by the platform is the automated stop loss and take profit options where the user can set a target threshold ETH price in both market directions at which point their position would be automatically closed out, by a trustless, non-custodial system. Currently released for MakerDAO and Liquity protocols, these automated strategies provide users with traditional trading options developed fully on-chain in the DeFi spirit.
DeFi Saver’s continuous support for Liquity protocol started almost right after the launch of the famous decentralized protocol with a release of a dedicated advanced management dashboard with all the Liquity actions and their own advanced features at user disposal.
They provided users with signature Boost and Repay 1-tx leverage features, as well as other unique options, such as the MakerDAO to Liquity 1-tx loan shift for anyone looking to escape Maker’s continuous Stability fees.
Then the platform took Liquity support one step further with the introduction of automated liquidation protection for Liquity Troves, a global first for the growing Liquity ecosystem.
Here’s a quick overview of how the stop loss or take profit strategy for Liquity looks in the background:
Here, the user sets a price threshold and activates the strategy for their Trove, following which the system continuously watches the Trove and sends out a transaction to cancel the position as soon as the price threshold is passed.
The UI will underline that this approach fully closes the user’s position into ETH when they attempt to set it up.
This is another unique but simple feature developed by the platform to provide users with quick access to the best lending interest rates across DeFi protocols. Here several protocols are integrated and offered within a single dashboard. Using the Smart savings feature users can track the best APY, estimate their earnings, and withdraw their stablecoin assets with the least amount of risk.
This is the simplest, yet safest and most reliable way of earning interest on users’ digital assets. Using this feature users who are in search of a stable APY can supply their stablecoin assets to Yearn or mStable and move them between these protocols for the best APY offered.
DeFi Saver team plans on adding more yield protocols and options in the following period so check the product updated from time to time if in search of some stable APY.
Loan Shifter is a powerful and easy-to-use refinancing tool for protocols. It provides an instant and simple way to change collateral or debt asset and shift between protocols with just a few clicks.
Loan Shifter offers a direct and convenient interface for users to:
- Switch to a different protocol
- Change their collateral asset
- Change a debt asset
The Simulation mode lets users check out all of the available features and test the different premade recipes or even create entirely new recipes, without worrying about gas fees. If any of the protocol features confuses the user, turning on this feature simulates any transaction on a private fork of the mainnet with the help of a platform named Tenderly.
With unique innovations like the recipe creator, an interface that allows anyone to create countless combinations of various interactions with multiple DeFi protocols, the platform strives to push the boundaries of DeFi to broader masses and compete with traditional finance in any way that DeFi becomes an appealing alternative.
DeFi Saver is working to improve its flagship feature, Automation, by allowing users to create custom triggers that work in conjunction with recipes and strategies, allowing them to choose what they want to do in DeFi without having to constantly monitor the charts and displays.
Lastly, and perhaps most importantly to broader masses, DeFi Saver has recently launched on Layer 2 networks Arbitrum and Optimism, providing their services for drastically lower transaction fees. The initial L2 launch includes support for Aave v3 with all the advanced DeFi Saver features and bridging options using LI.FI, their feeless Exchange, and the convenient Simulation Mode to test the new L2 environment before committing actual funds.
To know more about DeFi Saver, visit their official website.
Disclaimer: This is a paid post and should not be treated as news/advice.