Armadillo, a multi-chain impermanent loss (IL) safety resolution powered by the Crypto Volatility Index (CVI) from COTI, can 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 might be relevant and related in right now’s extremely dynamic crypto markets. Armadillo’s impermanent loss safety is only one latest 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. Because of this, the payout of impermanent loss safety may be made in a completely automated method, with none handbook motion required from LPs.

So as 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 crucial on-chain features.

On this case, Chainlink Keepers displays Armadillo’s impermanent loss safety platform to examine 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 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 concern 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.

CVI gives a dependable DeFi device appropriate for analyzing volatility, hedging portfolios, and incomes from being a liquidity supplier.

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 must 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 be taught extra concerning the platform.

“We determined to decentralize the payout operate 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 presently assist safe tens of billions of {dollars} throughout DeFi, even throughout document 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 workforce

Some distinctive options of Chainlink Keepers embrace:

  • 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 in a position to scale back time spent on DevOps, reduce operational overhead, and streamline improvement workflows.
  • enhanced safety — Tamper-proof, Sybil-resistant Chainlink Keepers signal on-chain transactions themselves, enabling automated sensible contract execution with out exposing personal keys.
  • Straightforward To Use — Builders are in a position to schedule time-based automation jobs in seconds utilizing the Chainlink Keepers Job Scheduler’s no-code UI.

“We have been utilizing Chainlink Keepers to assist rebase our volatility tokens, so the sensible contract automation resolution has already saved us plenty of operational prices and improvement time. With this new integration, Chainlink Keepers assist be certain that payouts in our impermanent loss safety function are executed autonomously, additional establishing a excessive commonplace of safety and decentralization for our platform.”
– Shahaf Bar-Geffen, CEO, COTI

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