In a recent blog post, Gravity Finance has officially launched “Silos,” a revolutionary DeFi automation and risk management tool poised to transform the crypto landscape. Developed over 16 months, the platform has emerged as a product of collaboration with some of the industry’s most prominent projects. The Gravity Finance team eagerly anticipates future partnerships and is proud to unveil the product, which is now live on the platform.
Silos: The Future of DeFi Automation
Silos empowers users to deploy personalised and fully automated DeFi tasks in a matter of seconds. By selecting a Silo (Smart Contract) from a catalogue of predefined strategies, users can automate various DeFi tasks and complex strategies with minimal effort.
Silos streamline the DeFi experience by incorporating one-button deployments that execute all necessary steps to approve, execute, automate, and manage different tasks. Users can modify various parameters on the user interface to personalise and customise actions, such as scheduling when tasks will execute.
Acknowledging the collaborative nature of their journey, the Gravity Finance team expresses gratitude to the projects that have contributed to Silos’ development. These include Chainlink Labs Automation Team, QiDAO, QuickSwap, KyberSwap, and Gamma. The team is confident that these relationships will facilitate the creation of new strategies and automation tasks in the future.
ERC-721 smart contracts power the Silos platform, enabling code to function and hold different types of tokens, including ERC-20 tokens, other ERC-721 tokens, and ERC-1155 tokens. These capabilities accommodate the requirements of various liquidity positions, including those used by V3 DEXs and yield farms.
A Glimpse Into Silos’ DeFi Strategies
The Silos platform offers a range of strategies that cater to varying user needs. Time-weighted swaps, known as “Swap and Claim” on the Silo catalogue, enable users to select tokens for depositing and purchasing, while Kyberswap API maximises output tokens for cost-effective swaps. Users can customise their Silo by determining the frequency and amount for each swap, as well as the destination of the purchased tokens.
For more advanced users, the “Borrow to Farm” strategy, or collateralized lending Silo, automates the process of depositing collateral tokens, borrowing other tokens, and using those borrowed tokens in yield farming to earn interest.
For those interested in implementing a Borrow to Farm Strategy, the process begins with perusing the Silos catalogue to identify the optimal strategy tailored to their requirements. Typically, users will seek out a strategy that accommodates collateral tokens they already possess, such as wETH, wBTC, or wMATIC, ensuring a smooth and seamless experience in optimising their DeFi endeavours.
Current “Borrow to Farm” strategies employ QiDAO over-collateralized loans, with Silos streamlining the entire process, reducing the time and effort required from the user. Undoubtedly, one of the most crucial aspects of many Silos lies in their utilisation of Active Risk Management (ARM) and Active Monitoring.
ARM-equipped strategies feature specific parameters embedded within the Silo code, which are incessantly monitored by Chainlink Automation Nodes. When necessary, the nodes can execute particular functions within the contract on-chain.
In the context of Borrow to Farm strategies, ARM parameters encompass the examination of a loan’s Collateral to Debt (CTD) ratio. If the CTD deviates beyond a predetermined range established in the Silo strategy code, the system is designed to recalibrate the user’s loan automatically. This is achieved by withdrawing a portion of the farming and liquidity positions and repaying a segment of the outstanding debt, ensuring the loan remains well-balanced and secure.
What Lies Ahead For Silos?
Gravity Finance is committed to working with various platforms and projects to develop innovative automated trading strategies and DeFi tasks. The possibilities for Silos are endless, and the team firmly believes that “we can automate any manual DeFi task.” Gravity Finance invites users with complex trading strategies or mundane tasks that could benefit from automation to reach out and discuss potential collaboration opportunities via Discord or Twitter.
In conclusion, the launch of Gravity Finance’s Silos platform marks a significant leap forward in DeFi automation and risk management. Silos paves the way for a more streamlined and user-friendly experience within the DeFi space by making it easier for users to manage their crypto investments. As the platform continues to evolve and forge partnerships with other projects, it’s poised to become an essential tool for both novice and experienced investors.
