How Minimax Uses Gelato Network for Automated Stop Loss & Take Profit Processing
The three pillars of a modern dApp are: decentralization, transparency and automation. Minimax Finance is being developed with these in mind.
When we launched the first version of the platform in January 2022, we processed stop loss and take profit events using our own liquidation bot. We understood it was a centralized solution and planned to replace it in the future. Fortunately, we came across Gelato Network, which enabled us to implement a decentralized solution for liquidations much earlier than we’d hoped.
Minimax Finance is a DeFi protocol that aggregates yield opportunities from third-party DeFi applications. Users can choose vaults from Aave, Venus, PancakeSwap, Beefy, Alpaca, Autofarm, Aurigami, Bastion and Yearn on seven blockchains (Polygon, Avalanche, BNB, Fantom, Arbitrum, Aurora and Moonbeam). On top of aggregation the platform provides a number of tools for protection from losses, easier and more efficient management of DeFi investments.
Users can enjoy a safer staking, lending and yield farming experience with the help of exchange-like stop loss — when the price falls below the specified level, users’ investments are automatically converted into stable coins.
At the same time, users can also automatically take profit when a token price goes up to a certain level.
Additionally, users can easily enter any vault with conversion depositing and receive the token they want with conversion withdrawal. This means that you enter a vault without owning the vault’s token — instead being able to use any liquid token you have, or choose the one you want to get when closing a position.
Users can make cross-chain token swaps right on the platform, minimizing the time they spend switching between different platforms.
Automating Liquidations with Gelato
Minimax Finance uses Gelato for automated liquidations that happen when asset prices hit stop loss or take profit limits.
Let’s say you have a BTC position at Minimax Finance, with stop loss set at $20000. If BTC price falls below $20000, Gelato will trigger execution of the smart contracts, which automatically unstake your deposit and convert it into stablecoins.
Gelato’s decentralized network of bots monitors on-chain contracts and executes functions when conditions are met. A contract has two functions: “resolve” and “exec”. Gelato frequently observes what the “resolve” returns, and as soon as the returned value becomes “true”, Gelato calls “exec”.
Gelato helps us to provide our users automations features of monitoring prices and liquidating positions in a transparent and decentralized way. We could use our own bots, however it would be more expensive and a lot less transparent and decentralized.
In addition, Gelato enables us to do swap simulations and find the optimal routes for conversion of liquidated positions into stablecoins. This saves a lot of money in transaction fees.
Next up is the launch of our platform on more blockchains! We are also planning Lido Finance integration. This means there will be more vaults and more options to stake, farm and lend.
What concerns new features, at the moment we are working on trailing stop loss.
Please check the full info about our roadmap and join our community:
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