💡DefiLens Automation Examples
Here are some practical examples of how you can use DefiLens to automate your DeFi strategies:
1. Optimizing Lending Yields
Scenario: Automatically lend when APY increases
Condition: APY on Aave for USDC increases above 5%
Action: Lend available USDC on Aave
Benefit: Capture higher yields without constant monitoring
Scenario: Withdraw when APY decreases
Condition: APY on Compound for DAI drops below 3%
Action: Withdraw DAI from Compound
Benefit: Avoid keeping funds in low-yield environments
2. Dynamic Trading Strategies
Scenario: Buy asset when price decreases
Condition: ETH price drops by 10% in 24 hours
Action: Buy 1 ETH using USDC
Benefit: Automatically "buy the dip" without emotional decision-making
Scenario: Sell asset when price increases
Condition: BTC price increases by 20% from your buy-in price
Action: Sell 0.1 BTC for USDT
Benefit: Lock in profits at predetermined levels
3. Rebalancing Portfolio
Scenario: Maintain desired asset allocation
Condition: ETH/BTC ratio in portfolio deviates by 5% from 50/50 split
Action: Buy/sell necessary amount to rebalance to 50/50
Benefit: Keep your portfolio balanced without manual calculations
4. Cross-Platform Arbitrage
Scenario: Exploit price differences
Condition: LINK price on Uniswap is 2% higher than on SushiSwap
Action: Buy LINK on SushiSwap, sell on Uniswap
Benefit: Profit from price inefficiencies across DEXes
5. Liquidation Protection
Scenario: Avoid liquidation on loans
Condition: Collateralization ratio on MakerDAO drops to 170%
Action: Add more collateral or repay part of the loan
Benefit: Protect your position from automatic liquidation
6. Time-Based DCA (Dollar-Cost Averaging)
Scenario: Regular investment regardless of price
Condition: Every Monday at 9:00 AM UTC
Action: Buy $100 worth of ETH
Benefit: Implement a disciplined investment strategy without manual input
Example Automation Flow
Here's how a multi-step automation might work:
Initial Setup: You have 10,000 USDC and want to optimize yields while managing risk.
Step 1: Yield Optimization
Condition: APY for USDC on Platform A > 6%
Action: Lend 5,000 USDC on Platform A
Step 2: Risk Management
Condition: If total value of USDC lending position drops below $4,800
Action: Withdraw all USDC from Platform A
Step 3: Redeployment
Condition: 24 hours after withdrawal from Step 2
Action: Check APYs across platforms and lend on highest (if above 4%)
Step 4: Take Profits
Condition: If total earnings from lending reach $500
Action: Withdraw $500 worth of USDC to your wallet
This flow automatically manages your lending position, protects against significant value loss, seeks new opportunities, and secures profits - all without your constant attention.
Remember, these are just examples. DefiLens allows you to create custom automations tailored to your specific investment goals and risk tolerance. Always consider your personal financial situation and risk appetite when setting up automations.
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