Visor Finance Integrates Chainlink Keepers to Automate Liquidity Provisioning Strategies on Uniswap v3
Visor Finance is pleased to announce our integration of Chainlink Keepers on Ethereum mainnet, serving as a highly reliable and trust-minimized way to run a deterministic ‘Supervisor’ which contributes to Visor’s liquidity management strategies on Uniswap v3. Chainlink Keepers is a decentralized service that allows development teams and DAOs to delegate regular smart contract maintenance tasks to a Chainlink’s existing network of professional DevOps. In the case of Visor’s Supervisor layer, Chainlink Keepers will automate certain on-chain functions pertaining to liquidity management strategies on Uniswap v3, such as rebalancing LP positions when certain predefined thresholds are crossed.
We decided to leverage Chainlink Keepers because it’s a decentralized network made up of the same time-tested and battle-hardened node operators that currently secure tens of billions of dollars in value by operating Chainlink Price Feeds. Adding the Keeper’s deterministic processes to the Supervisor’s feature set, not only will it decrease the complexity for third parties running a Supervisor, but allows a strategist’s development time to be spent on their core task — developing active and increasingly sophisticated liquidity management strategies that maximize value of LPs on Uniswap v3.
Using Chainlink Keepers to Automate LP Liquidity Provisioning
Visor Finance is a liquidity management protocol that allows DeFi participants to provision their assets for use as liquidity that’s actively deployed into Uniswap v3 pairs and be managed by Supervisors — deterministic and non-deterministic position management based on chosen conditions and thresholds. Visor is integrated with many liquidity pools on Uniswap and utilizes a variety of market making strategies to maximize returns from LP fees while minimizing impermanent loss.
In order to automatically execute certain transactions such as reinvesting fees, opening and closing limit orders, and setting price ranges, our position management smart contract needs to be notified when to execute based on external conditions and thresholds that occur. Since smart contracts are not natively aware of off-chain conditions, they require an on-chain transaction to call a function within the smart contract, triggering its logic to execute. Calling smart contract functions when certain conditions occur is a form of maintenance that’s often performed by external entities known as keepers.
We decided to use Chainlink Keepers over other solutions because it’s optimized to provide several assurances and a core set of features very beneficial to strategists, such as:
- High Uptime — Chainlink Keepers are run by the same professional DevOps teams that have an established on-chain performance history of providing high reliability to Chainlink Price Feeds during extreme network congestion.
- Low Costs — Chainlink Keepers leverage several gas-optimizing features that lower the costs of automating maintenance tasks for users, including a rotating node selection process to prevent gas price auction wars, stabilizing the costs of triggering key smart contract functions.
- Decentralized Execution — Chainlink leverages a decentralized and transparent pool of Keepers to offer users strong guarantees around secure contract automation, saving teams time and mitigating the risks around manual interventions or centralized servers.
- Expandable Computation — Chainlink Keeper Network perform off-chain computations and verify calldata for smart contracts, allowing developers to build advanced, trust-minimized dApps at lower costs.
By leveraging Chainlink Keepers, liquidity management strategies can run reliably in an automated manner. In the first use case of Chainlink Keepers fees must be periodically reinvested with new and existing capital being strategically re-allocated between active liquidity positions and single asset limit orders. Visor relies on its management daemons (Supervisors) to implement strategies that reap the highest possible returns for Active LP’s. Chainlink Keepers will immediately allow us to maintain the highest possible asset utilization by monitoring utilization rates and deploying capital where and when our Supervisors say it is needed.
There are a multitude of possibilities that we are excited to implement and expand upon with Chainlink Keepers based on the growing set of LP management strategies.
“Chainlink Keepers enables us to offer strategists the ability to automate certain processes within our liquidity provisioning protocol, all while minimizing implementation complexity and assuring reliability,” stated Miles Becker, Visor Finance. “The optimization and simplicity built into Chainlink Keepers made it superior to other third-party solutions, which is ultimately empowering for strategists to focus on producing more sophisticated strategies rather than smart contract tooling.”
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.
About Visor Finance
Visor Finance is a liquidity management protocol that allows DeFi participants to provision their assets for use as liquidity that’s actively deployed into Uniswap v3 pairs and be managed by Supervisors — deterministic and non-deterministic active position management. Visor is integrated with many liquidity pools on Uniswap and utilizes a variety of market making strategies to maximize returns from LP fees while minimizing impermanent loss.
Would you like to become a strategist / Supervisor?
Visor recently helped form an entity that focusses on funding research and development of Active LP strategies. If you are a data scientist and interested in receiving beta access to Supervisor tooling for the purposes of running a Uniswap v3 specific strategy — please reach out to Gamma Strategies.