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ETHA Lend, a composable DeFi yield optimizer built on Ethereum and Polkadot, announced today that it will integrate Chainlink Keepers on Ethereum to automate key protocol functions.
The integration will start with the facilitation of regular yield harvests from ETHA Lend vaults and the execution of rebalancing strategies in supported lending markets.
Chainlink Keepers uses decentralized off-computation to monitor predefined events to auto-trigger on-chain actions when they are found to occur — all in a low cost, highly reliable, and fully verifiable manner.
The ETHA Lend yield optimizer optimizes earnings by executing algorithmically optimized yield-generating strategies in a decentralized way using DeFi protocols like Aave, dYdX, Cream Finance, and Compound.
Chainlink Keepers + ETHA Lend
Chainlink Keepers factors in several parameters to determine the best strategies for ETHA Lend vaults, including the latest gas cost (fetched by a Chainlink oracle), the volatility of the asset’s yield, and the size of the deposit to generate algorithmically optimal yields in wBTC and wETH.
The first processes to be automated will be the harvesting and rebalancing functions, where yield is harvested 1–2 times a day and rebalances are automated. This will lead to more efficient vaults and less manual intervention requirements, as well as more reliable yield payouts and timely rebalances.
Auto harvesting and rebalancing require a solution that monitors various conditions like time or market events and then calls ETHA Lend smart contracts when those conditions are satisfied. These processes necessitate the use of external bots known as keepers, which perform tasks on behalf of smart contracts.
After assessing several solutions, ETHA Lend selected Chainlink Keepers as it offers features including:
- 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 and market volatility.
- Low Costs — Chainlink Keepers have 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 and stabilize costs.
- Decentralized Execution — Chainlink leverages a decentralized and transparent pool of Keepers to provide strong guarantees around secure contract automation, saving teams time and mitigating the risks around manual interventions or centralized servers.
- Expandable Computation — Chainlink Keepers perform off-chain computations and generate call data verifiable by smart contracts, allowing developers to build trust-minimized dApps at lower costs.
“Integrating Chainlink Keepers will enhance ETHA Lend by automating yield harvests and yield strategy rebalancing in a trustless and efficient manner. The historical reliability of Chainlink services and their optimizations for decentralization and low costs made Chainlink Keepers a logical choice, ultimately freeing up precious development resources that can go towards further optimizing our core protocol and yield strategies.”
– ETHA Lend Co-Founder Danny Boahen