Chainlink Keepers automates impermanent loss return on Armadillo

Armadillo, a multi-chain impermanent loss (IL) safety resolution powered by the Crypto Volatility Index (CVI) from COTI, will likely 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 workforce developed a toolbox of decentralized threat administration options which are relevant and related in immediately’s extremely dynamic crypto markets. Armadillo’s impermanent loss safety is only one current addition to this toolbox and appears to be one of the 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. Consequently, the payout of impermanent loss safety may be made in a completely automated manner, with none handbook motion required from LPs.

With a purpose to assist automate payouts and additional decentralize Armadillo, a reliable resolution was wanted. Chainlink Keepers is a decentralized service purpose-built to handle duties on behalf of sensible contracts that “wake” up sensible contracts when they should carry out vital 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 person’s safety interval has ended, Chainlink Keepers request the payout on behalf of the person, enabling a seamless person expertise.

Crypto Volatility Index (CVI)

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

CVI is a full-scale decentralized platform that brings the favored “market concern index” to the crypto market, which is created by computing a decentralized volatility index from cryptocurrency choice 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 in an effort to buy the safety.
• Custom-made — Every person units the pair, quantity, and timeframe to guard.
• Decentralized On-Chain Safety — On-chain oracles and sensible contracts are used to make sure safety and manipulation resistance.

Take a look at Armadillo’s Whitepaper to study extra in regards to 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 certain that each USDC payout for Armadillo’s impermanent loss safety is executed on time in a trust-minimized method.”
– The CVI Crew

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 — Tasks that use Chainlink Keepers are capable of scale 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 sensible 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 sensible contract automation resolution has already saved us a variety of operational prices and growth time. With this new integration, Chainlink Keepers assist be certain 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