Chainlink Keepers automates impermanent loss return on Armadillo

Armadillo, a multi-chain impermanent loss (IL) safety answer powered by the Crypto Volatility Index (CVI) from COTI, shall be utilizing Chainlink Keepers on Polygon to automate IL safety payout.

CVI operates a basket of volatility merchandise, together with Armadillo’s impermanent loss safety.

The CVI group developed a toolbox of decentralized danger administration options which can be relevant and related in at this time’s extremely dynamic crypto markets. Armadillo’s impermanent loss safety is only one current addition to this toolbox and appears to be probably the most promising options for liquidity suppliers.

CVI + Chainlink Keepers

Chainlink Keepers helps safe and cost-efficient automated payouts to liquidity suppliers (LPs) for his or her incurred impermanent loss. In consequence, the payout of impermanent loss safety could be made in a totally automated manner, with none handbook motion required from LPs.

So as to assist automate payouts and additional decentralize Armadillo, a reliable answer was wanted. Chainlink Keepers is a decentralized service purpose-built to handle duties on behalf of good contracts that “wake” up good contracts when they should carry out crucial on-chain features.

On this case, Chainlink Keepers displays Armadillo’s impermanent loss safety platform to test if any safety durations have handed. At any time when a consumer’s safety interval has ended, Chainlink Keepers request the payout on behalf of the consumer, enabling a seamless consumer expertise.

Crypto Volatility Index (CVI)

Utilizing the Black-Scholes possibility pricing mannequin, the Crypto Volatility Index (CVI) computes the implied volatility of bitcoin and ethereum possibility costs after which analyzes how markets anticipate future volatility.

CVI is a full-scale decentralized platform that brings the favored “market worry index” to the crypto market, which is created by computing a decentralized volatility index from cryptocurrency possibility costs and analyzing the market’s expectation of future volatility.

Armadillo is a protocol that provides:

• Multi-Chain Safety — Protects chosen pairs staked throughout any chain, DEX, or platform.
• Non-Custodial — The liquidity doesn’t need to be moved so as to buy the safety.
• Personalized — Every consumer units the pair, quantity, and timeframe to guard.
• Decentralized On-Chain Safety — On-chain oracles and good contracts are used to make sure safety and manipulation resistance.

Try Armadillo’s Whitepaper to be taught extra concerning the platform.

“We determined to decentralize the payout perform of impermanent loss safety utilizing Chainlink Keepers as a result of it’s operated by the identical pool of time-tested, provably dependable node operators that at present assist safe tens of billions of {dollars} throughout DeFi, even throughout report ranges of community congestion and excessive volatility. The confirmed infrastructure of Chainlink helps be sure that each USDC payout for Armadillo’s impermanent loss safety is executed on time in a trust-minimized method.”
– The CVI Group

Some distinctive options of Chainlink Keepers embody:

• Decentralized Execution — Chainlink Keepers present dependable, trust-minimized automation with no single level of failure, mitigating dangers round handbook processes and centralized servers.
• Elevated Effectivity — Initiatives that use Chainlink Keepers are capable of cut back time spent on DevOps, decrease operational overhead, and streamline growth workflows.
• Enhanced Safety — Tamper-proof, Sybil-resistant Chainlink Keepers signal on-chain transactions themselves, enabling automated good contract execution with out exposing non-public keys.
• Simple-To-Use — Builders are capable of schedule time-based automation jobs in seconds utilizing the Chainlink Keepers Job Scheduler’s no-code UI.

“We’ve been utilizing Chainlink Keepers to assist rebase our volatility tokens, so the good contract automation answer has already saved us plenty of operational prices and growth time. With this new integration, Chainlink Keepers assist be sure that payouts in our impermanent loss safety characteristic are executed autonomously, additional establishing a excessive normal of safety and decentralization for our platform.”
– Shahaf Bar-Geffen, CEO, COTI