MakerDAO Users Can Now Rely on Stop Loss, Take Profit and Savings Liquidation Protection Strategies Using DeFi Saver

DeFi Saver introduced automated strategies, a new major update of its flagship automation service. This update marks the beginning of a new era of DeFi automation, intending to provide a safer and more convenient environment for all decentralized finance users.

The first new automated strategy at users’ disposal allows MakerDAO users to farm yield protocols such as Yearn, mStable and Rari with effectively no liquidation risk.

The new savings liquidation protection strategy automatically pays back the owners’ debt with stablecoin assets supplied in the aforementioned yield protocols. Historically, users had to sell part of their collateral for automated liquidation protection, which was bittersweet. The losses would still be drastically lower than liquidation – but any selling is usually not desirable.

To the joy of many MakerDAO users, the long-awaited and highly sought-after ‘stop loss’ strategy is finally available. Released together with the ‘take profit’ strategy, these essential market order types are now available to MakerDAO users through the DeFi Saver dashboard. Support for other integrated protocols is coming in the following period.

Each automated strategy consists of triggers and actions from various integrated protocols executed once the trigger conditions are met. Stop loss and take profit strategies will rely on a price trigger to execute necessary actions to close a CDP. Instead of relying on MakerDAO’s oracles, DeFi Saver decided to use Chainlink oracles to update the price trigger.

Another critical aspect of the newly released strategies is that closing the MakerDAO CDPs will close them to Maker’s Dai stablecoin. Closing the CDPs to the supplied collateral will also be made available soon.

The first phase of the new service provides users with pre-made team-built strategies. The ultimate goal is to allow users full customization and creation of their own unique automated strategies for DeFi investing and position management.

The team behind DeFi Saver pioneered automated liquidation protection and leverage management in decentralized finance back in 2019 with the release of the CDP automation, a non-custodial and trustless service for protecting MakerDAO positions against liquidation. After initial support for MakerDAO, the service was expanded to Compound and Aave protocols, with continuous gas usage optimizations.

A more general approach that would allow for a wide variety of strategies combining different triggers with actions from various DeFi protocols was always the goal, and it required an architectural overhaul. The stage was set with modular smart contracts that allowed users to create numerous combinations of various actions from multiple DeFi protocols to execute manually. The last necessary step was the creation of a framework that would enable automating those combinations, which the team put in place now.

DeFi Saver introduced an all-new automation UI that showcases available pre-made strategies with the release.

Given the importance of a non-custodial and trustless approach to decentralized finance, security was the number-one priority, especially concerning automated services. The Dedaub team fully audited the new update.

With the first new automated strategies available, you can expect many more in the following period with expanded protocol support. At the same time, the team is actively working on expanding support for layer two solutions, such as Arbitrum and Optimism, in line with the plans to make DeFi Saver power tools more accessible to retail users.

If you’d like to try out DeFi Saver or any of its features, connect your non-custodial wallet and start managing your DeFi assets with their power tools.

For more context, check out these articles.

• Automated Strategies – The Next Era of DeFi Automation
• Introducing Stop Loss and Take Profit for MakerDAO CDPs
• Automated Strategies – Technical Overview