RoboVault features in-built impermanent loss protection to provide users with automated delta neutral earning strategies for secure, safe, and competitive returns on their assets.
RoboVault needed highly reliable automation infrastructure to help rebalance strategies in a timely manner, manage liquidation risk, and protect users from impermanent loss.
Chainlink Automation was integrated to help scale the protocol and provide users with high assurances that RoboVault’s operations were executed on time, every time.
RoboVault is able to automatically execute quantitative strategies on-chain, giving users access to advanced, delta neutral DeFi earning strategies.
Maintaining delta neutral strategies requires constant monitoring and rapid position rebalancing, making automation mission-critical. Failure to rebalance in time can result in user losses from high exposure to market movements through impermanent loss and potential liquidations for strategies that include leveraged positions.
However, building and maintaining highly reliable automation infrastructure for RoboVault required significant developer resources that could be better used to build out core aspects of the RoboVault protocol.
“Before Chainlink Automation I had night sweats worrying about my custom bot landing transactions reliably; I now sleep like a baby.”
Smooth Bot
Co-Founder at RoboVault
RoboVault conducted a test amongst various automation solutions available in the market including their own in-house automation system and Chainlink Automation. Each was placed in a race condition to compete at identifying eligible automation jobs and then performing the job as required. In this case, the automation job was to rebalance vaults for their delta neutral earning strategies.
The results revealed that Chainlink Automation was significantly more reliable than all alternatives. Chainlink Automation outperformed external automation solutions at a 77:1 ratio and in-house solutions at a 4.5:1 ratio.
See RoboVault’s presentation at SmartCon 2022 for more details on the race test.
RoboVault integrated Chainlink Automation as an upgrade to its in-house and external automation infrastructure. This enabled the team to safely reallocate developer resources to core protocol development and accelerate the creation of more delta neutral DeFi earning strategies. By relying on Chainlink Automation, the RoboVault team could access the same battle-tested Chainlink node operators that already help enable hundreds of billions of dollars in value across Web3.
Delta neutral strategies are highly dependent on high-performance and reliable automation. Failure of automation can result in losses to users from high exposure to market movements through IL and also potential liquidations for strategies that contain some borrowing components.
By integrating Chainlink Automation, RoboVault increased the reliability of its delta neutral strategies and reduced the protocol’s dependency on in-house automation infrastructure. Chainlink Automation outperformed external automation solutions at an 77:1 ratio and in-house solutions at an 4.5:1 ratio. In addition to helping prevent liquidations and impermanent loss, Chainlink Automation has helped the team save over 100+ hours of DevOps resources and as a result RoboVault developers have the more time to focus more on what they do best—creating high-quality delta neutral strategies.
This is one of many reasons Chainlink Automation has become the industry standard for developers building advanced DeFi protocols.
Watch RoboVault’s full presentation from SmartCon 2022:
