Hello Everyone!
I would like to propose a project for automating vault strategy orders execution for Lending & Borrowing protocols.
Project Name: Degen Vaults (draft)
Product Lead: Leandro Manzanal
Team Members: TBD from NEAR Argentina Guild
Overview:
Automatic vault strategy orders execution platform for Lending & Borrowing protocols
Allow users to seamlessly manage strategy orders to be executed once a specific condition, defined by the user, takes place.
Orders execution could create or delete a position, depending on the strategy. (1)
Automatic strategy orders execution aims to maximize returns across various Lending & Borrowing protocols.
In the next examples we are going to use stNEAR and a stablecoin pegged 1:1 to USD (e.g. nUSDO) to represent positions.
Leverage position strategy order
Given the following position:
- Lent stNEAR as collateral
Users will be able create orders to be executed when the stNEAR price is below a certain value in USD, or if the C/D factor is below a certain value.
The strategy executes:
- Borrow nUSDO debt
- Swap nUSDO with stNEAR
- Deposit stNEAR as collateral
Take Profit strategy order
Given the following positions:
- Borrowed nUSDO as debt
- Lent stNEAR as collateral
Users will be able to create orders to be executed when the stNEAR price is under a certain value in USD.
The strategy executes:
- Withdraw stNEAR collateral
- Swap stNEAR with nUSDO (2)
- Payback nUSDO debt
The remaining stNEAR (or nUSDO) is the operation profit
(1) Important note with leveraged positions, if you’re liquidated you can potentially lose everything!
(2) To define if the user could set on the order creation, to swap the whole stNEAR collateral or just a certain amount necessary to payback nUSDO debt