Automated Stop-loss Bot

While all leveraged yield farming protocols come with liquidation thresholds to protect the lenders, there is very little protection for leveraged yield farmers. On top of liquidation thresholds, Eternal Finance introduces Stop-loss ratio, offering an extra layer of protection for all leveraged yield farmers.

Every positions are closely monitored by our Automated Stop-loss Bot. Unlike most of the stop-loss mechanism in the market which is based on debt ratio, our Stop-loss Bot monitors the real-time position’s value in terms of USD. Once the position net value drops below a predetermined protection threshold, the Bot will automatically close the farming position, convert all the assets to USD pegged stable coins and return them to the yield farmers.

Some of the protocols returns both farming pair of assets back to yield farmers upon liquidation, based on minimum transaction mechanism. We notice that it is of paramount importance not to return the assets in non-stable tokens, as they are still subject to price fluctuation after the farming position is closed.

Our Automated Stop-loss Bot let the farmers rest assured that their principals are being well protected on-chain, even you do not check the position status for days or weeks, your farming position is still under control with predetermined factor.