The Decentralized Finance (DeFi) revolution is officially underway. At the end of 2021, the total value of assets in the DeFi space topped $90 billion.
Fueling this growth is the dominance of centralized exchanges (CEXs). These exchanges, which control the flow of most of the world’s crypto assets, use their volume to stifle competition. Moreover, CEXs have proven themselves to be poor custodians of customer assets.
Therefore, it is no surprise that traders have welcomed decentralized exchanges (DEXs) with open arms. However, while DEXs give investors more control and ownership over their assets, these platforms lack the essential trading and risk management tools offered by CEXs.
The current state of trading on DeFi platforms
If you’ve ever dabbled in DeFi and DEXs before, you know that it requires a very hands-on approach. Almost every action has to be executed manually. If you are a regular user of decentralized platforms, chances are you are spending considerable amounts of time:
- Monitoring price movements on different charts and online tools
- Staring at Uniswap, SushiSwap, or PancakeSwap interfaces on multiple windows or screens
- Fine-tuning slippages and gas settings to ensure that transactions are successful
- Waiting for orders to fill without any indication of progress
- Setting price alarms on portfolio tracking apps, like Blockfolio
- Calculating optimal times to conduct trades to minimize gas fees
- Manually analyzing yield rates on different liquidity pools
This isn’t helped by the fact that new DeFi projects are released every week. Keeping track of numerous projects while optimizing trades is easily a 24/7 job, even for a team of experienced traders.
To make matters worse, the DeFi space is rife with sniping and front-running bots, whose job it is to make sure you get the worst possible deal on your trades.
So, not only is DeFi trading a time-consuming venture, but it also carries significant risk. Given this, it is clear that automated trading and risk management tools are a must.
The case for automating DeFi Transactions
Fortunately, the Autonomy Network offers a suite of automation tools previously reserved for traders on CEXs. For example, arbitrary transactions can be executed using smart contracts with little to no human involvement. This level of automation allows you to conduct the trades you want while freeing up precious cognitive capacity and time.
Autonomy Network can also implement smart contracts to automate various order types, such as limit orders and stop losses. These features allow users to manage risk while trading on decentralized platforms.
In addition to minimizing losses, automated trading and risk management features also give you a fighting chance against front-runners and snipers, thus ensuring that you get the best possible prices on your trades.
The Autonomy Network can also automate and manage the risks associated with yield farming. Currently, regardless of the strategy used, successful yield farming is a very manual process. Investors must constantly monitor their locked assets to ensure that they are getting maximum profits.
However, with Autonomy Network, you can easily create a smart contract to automatically move your funds between the most profitable farms, thus maximizing returns.
DeFi, and the cryptocurrency market, by extension, operate on a 24/7 schedule. The space is also constantly evolving, requiring trading tools and techniques that can keep up with advancements and give you the edge over competing traders. Manual trading, therefore, is not a viable option.
With Autonomy Network, you can automatically execute transactions under optimal conditions to ensure that you get the best price on your investment. Furthermore, automated smart contracts can also deploy robust risk management strategies, such as limit and stop orders, to help safeguard your DeFi portfolio while you sleep.