⚑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:

    1. APY on Platform A for USDC > 8%

    2. Total Value Locked (TVL) on Platform A > $100 million

    3. 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:

  1. Use AND/OR logic to create complex rule sets

  2. Prioritize conditions if using OR logic

  3. 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

  1. Borrow USDC on Aave when rates are below 3%

  2. Use borrowed USDC to provide liquidity on Uniswap

  3. If borrow rates on Aave increase above 4%, withdraw from Uniswap and repay the loan

Tips for Cross-protocol Strategies:

  1. Be aware of gas costs for multiple transactions

  2. Monitor the health of all involved protocols

  3. 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!

Last updated