Fetch.ai launches AI ‘agent’ to counter DeFi impermanent losses
Cambridge-based AI blockchain startup Fetch.ai has launched a DeFi (Decentralised Finance) Agents toolkit to greatly improve the experience of such “Web 3.0” applications.
Fetch.ai made our innovative companies to watch in 2021 list for its grand vision to build a decentralised network of autonomous “agents” that perform real-world tasks. For most companies, that plan could sound almost impossibly ambitious—but Fetch.ai has the talent and resources to pull it off and continues to gain votes of confidence by signing partnerships with the likes of Bosch, Festo, and IOTA.
The company’s mainnet went live in March 2021 and has been ramping up its announcements since.
The new DeFi Agents toolkit app is the latest in a barrage of announcements and allows users to customise stop-loss parameters on decentralised exchanges. Stop-Loss agents can automatically withdraw funds from liquidity pools if the exchange rate between the two tokens falls to a predetermined level to combat the risk of impermanent loss that liquidity providers face.
Humayun Sheikh, CEO of Fetch.ai, said:
“Intelligent automation has the potential to transform the end-to-end experience of the DeFi applications we use today.
Rather than constantly monitoring price action and having to manually withdraw liquidity, Fetch.ai DeFi Agents simplify and streamline that whole process for LPs.
By improving upon the current experience for LPs on popular DEXes like Uniswap and PancakeSwap, we have created the catalyst for the adoption and usage of DeFi applications.”
Users will initially be able to create up to five agents with stop-loss triggers for all liquidity pools on Uniswap and PancakeSwap. Agents can be tracked and updated through a dedicated dashboard.
Customisations of the DeFi agents can include:
- Swap support: allows a swap to be performed at a given threshold for Uniswap v2 and PancakeSwap pools.
- APY Monitoring: will withdraw liquidity if APY is less than a specified amount.
- ETH fund management I: Deposits funds in a contract and uses it to automatically top-up one-or-more pools.
- ETH fund management II: Allows agents to swap ERC-20s or BEP-20s for ETH if funds drop below a predetermined level.
- Strategy Creator: Creates IFTTT (If This Then That) strategies for pool deposits/withdrawals.
- Portfolio management (Uniswap v3): Defines a weighting for a sector (e.g. oracles, AI, NFTs) and implements an ETF-like strategy (similar to market-weighted Balancer pool).
- Private Uniswap v3 strategy: Hides strategies behind the agent.
Over time, Fetch.ai plans to extend the functionality of its DeFi Agent tool to support further automatic deposit and withdrawal of liquidity based on conditions including token sentiment, move liquidity of ERC-20s or BEP-20s to a defined range if the price is breached (in Uniswap V3), and remove liquidity if ETH fees are becoming too high in a pre-set period of time.
You can get started with the DeFi agents app from Fetch.ai here.
(Image Credit: Fetch.ai)
Want to learn more from executives at the heart of this space? The Blockchain IoT Solutions Congress on March 8 2022 will explore the convergence of these two technologies and the use cases and industries that will benefit.