⚡Advanced Strategies
Note: Some advanced features are coming soon! We're constantly working to expand DefiLens's capabilities. While the strategies below are currently available, we have even more exciting features in development. Keep an eye on our updates for new advanced automation options.
Coming Soon:
AI-powered strategy recommendations
Multi-chain automations
Customizable strategy templates
Advanced analytics and performance forecasting
Now, let's explore the advanced strategies currently available:
Combining Multiple Conditions
By combining multiple conditions, you can create more nuanced and responsive automations.
Example: Smart Yield Farming
Conditions:
APY on Platform A for USDC > 8%
Total Value Locked (TVL) on Platform A > $100 million
Your current position < $10,000
Action: Lend USDC on Platform A
Benefit: This strategy ensures you're not just chasing high yields, but also considering the platform's liquidity and your own exposure limits.
Tips for Multi-Condition Strategies:
Use AND/OR logic to create complex rule sets
Prioritize conditions if using OR logic
Test your strategy with small amounts first
Cross-protocol Automations
DefiLens allows you to create automations that work across different DeFi protocols, opening up new opportunities.
Example: Leveraged Yield Farming
Borrow USDC on Aave when rates are below 3%
Use borrowed USDC to provide liquidity on Uniswap
If borrow rates on Aave increase above 4%, withdraw from Uniswap and repay the loan
Tips for Cross-protocol Strategies:
Be aware of gas costs for multiple transactions
Monitor the health of all involved protocols
Understand the risks of each protocol you're interacting with
Risk Management Tips
While automation can enhance your DeFi experience, it's crucial to manage risks effectively.
1. Use Stop-Loss Automations
Set up automations to exit positions if they drop below a certain value
Example: If your staked ETH value drops by 20%, unstake and convert to USDC
2. Diversification Automations
Create rules to spread your assets across different protocols
Example: Never have more than 30% of your portfolio in any single protocol
3. Impermanent Loss Protection
For liquidity providers, set up automations to monitor and mitigate impermanent loss
Example: If impermanent loss exceeds 5%, remove liquidity and reassess
4. Collateral Health Monitoring
For loan positions, automate collateral management
Example: If collateralization ratio drops below 200%, add more collateral or partially repay the loan
5. Profit-Taking Strategies
Automate taking profits to reduce overall portfolio risk
Example: If any asset grows to over 20% of your portfolio, sell the excess and redistribute
Remember, while these strategies can be powerful, they also come with increased complexity and potential for unexpected interactions. Always start small, monitor closely, and adjust as needed. DefiLens provides the tools, but understanding the underlying DeFi concepts is crucial for using them effectively.
Stay tuned for our upcoming advanced features that will make your DeFi automation even more powerful and customizable!
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