Cryptocurrency bear markets are notorious for recessions and liquidations of mortgaged investors. In addition, decentralized finance projects, or DeFi, can be targeted by hackers or hacked, resulting in huge losses for investors of their tokens. The new software now aims to alert investors in real time about potential risks to their positions.
Demonstrates users and managers of two of these services, HAL and Aldrin. HAL is a Web3 data infrastructure tool that allows companies or traders to track, control and manage data. HAL recently launched the Simple Avalanche Notification (AVAX) API, which allows blockchain users to automate risky position alerts. Meanwhile, Aldrin Solana’s is the first fully verified decentralized exchange, or DEX (SOL).
Marco De Rossi, co-founder of HAL, explained that users can notify anyone on any channel of suspicious DeFi activity at an address with wallet monitoring. “We already have hundreds of Avalanche users playing Pangolin (PNG), Sushiswap (SUSHI), Aave (AAVE), wallet monitoring and more. TraderJoe is also coming soon, as well as the top 10 Avalanche apps of the year,” said the Russian. .
Meanwhile, the user HAL, who wished to remain anonymous, told Cointelegraph:
«I use AAVE and HAL built right into them, which allows me to notify me if my position there is compromised; and without having to update their dashboard, I was able to take action quickly. ”
An anonymous user added: “I might also be the first to know when something new comes up, and for that HAL lets me keep track of every new smart contract distributed by a developer that I follow, that way I can I start my search faster. ” and stay up to date. ”
When it comes to token price volatility, Hisham Khan, founder and CEO of Aldrin, explained that it can be very difficult to trade manually and get a good enough price. “If you’re dealing with small or even medium-sized coins in the market, the downside when Bitcoin or Ethereum breaks certain levels of support is simply madness; you could lose up to 70% of your profits within 48 hours,” Khan said.
This is an example of a 25 token wallet rebalancing that takes up to 30 minutes if done manually, but is expected to take less than seconds if done with Aldrin’s rebalancing feature. “The automation features that Aldrin offers, such as Rebalancer and automatic rebalancing when I provide liquidity in pools, save me a lot of time,” commented an Aldrin user who wished to remain anonymous.
Like all DEXs, Aldrin faces potential safety risks. But according to Khan, Aldrin has been fully investigated, so he wants more options to deal with these risks. he added:
“There is always a risk of a periodic loss for liquidity providers. The expected return may be […] false or misleading if the underlying token is not in the Aldrin pools […] but this has been explained as a disclaimer for users. “