Gravity Finance ‘Silos’ — A Ground-breaking DeFi Product Integrating Chainlink Automation
Silos; Automated DeFi
We are leveraging Chainlink Automation to securely and cost-efficiently trigger the execution of DeFi tasks. As a result, Silos will seamlessly manage advanced DeFi strategies and tasks on behalf of their owner, through reliable automation.
Silos allow users to deploy personalised and fully automated DeFi tasks in seconds. Users can deploy a Silo (Smart Contract) from a catalogue of predefined strategies built by the Gravity team.
As the name suggests, user-funds are not pooled together in community vaults, they are “Siloed” in personally owned Smart Contracts (ERC-721). Since each Silo is individually deployed and owned, the Silo owner can customise certain parameters within their deployment, allowing for further customisation and personalised strategies.
Advanced users can even deploy multiple Silos from the strategy-catalogue and then link them together to create even more complex flows, all through an intuitive user-interface and without any coding experience required!
We decided to use Chainlink Automation to power the Silos automation functions because it is the most reliable and decentralised Web3 automation service available. Chainlink Automation monitors each block on the Polygon network and triggers predefined strategies to execute, if and when required. For non-critical tasks, users can set their strategies to update on a pre-set schedule, such as hourly, daily, weekly etc.
A prime example of monitored execution is our collateralised loan Silo strategies. Using Chainlink Automation, which monitors each block and executes on chain if required, a Silo’s Collateral to Debt (CTD) ratio is constantly monitored and automatically rebalanced if the collateral value falls outside of a predefined value.
This Active Risk Management (ARM), developed by Gravity, allows users to “set and forget”, safe in the knowledge that the Silo will automatically rebalance a loans position to bring it back to a healthy balance, thereby avoiding liquidation events.
About Chainlink Automation
Users must maintain a LINK balance in their “Silo Manager” to pay for Silos transactions on chain. The battle-tested infrastructure of Chainlink helps ensure that every strategy is executed on time in a trust-minimised manner, giving users additional guarantees that it will function as intended.
Chainlink Automation is a decentralised service purpose-built to manage tasks on behalf of smart contracts. Chainlink Automation leverages decentralised, hyper-reliable, and economically incentivized automation nodes to wake up smart contracts when they need to perform critical on-chain functions, which usually take place at regular time intervals (e.g., every day at the same time) or based on external events (e.g., when an asset hits a specific price).
Some of the notable features of Chainlink Automation include:
- Highly reliable, performant, and decentralised automation — Chainlink Automation ensures transactions are identified and confirmed quickly even during periods of heavy network congestion by leveraging Chainlink’s battle-tested transaction manager.
- Time-tested infrastructure that helps save costs — Chainlink Automation enables us to eliminate in-house automation infrastructure costs, reduce resources spent on DevOps, and increase speed and efficiency.
- Built to enable faster scaling — Chainlink Automation enables us to scale faster and avoid the challenges that come with building and maintaining the infrastructure needed to reliably automate across multiple chains.
- Unlocks new use cases — With smart contract automation, we’re able to explore new use cases and unlock capabilities that would otherwise not have been possible.
“We’re excited to be using Chainlink Automation to help users automate DeFi. By enabling end-to-end decentralisation, users are able to leverage the security and reliability benefits of industry-standard Web3 infrastructure and optimise their DeFi trading strategies and tasks.”
— GravityFi_D at Gravity Finance.
Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralised oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.
About Gravity Finance
Gravity Finance is a suite of DeFi products, launched in early 2021 on the Polygon network.
Products include a Decentralised Exchange (DEX), Yield Farms, Auto-compounding Vaults, a Launchpad and as of today, the all-new Silos!
GFI token is the DAO Governance token for Gravity Finance.
By owning GFI tokens users can take part in DAO votes and earn Gravity platform admin-fees (paid in wrapped-ETH on the Polygon Network).
Come join our friendly community on Discord to find out more.