LRT Automation
Capitalise on market price movements with Console.
LRST Automations are designed for users seeking to optimize their trading strategies for Liquid Restaking Tokens (LRST) such as ezETH and eETH. This automation is ideal for those looking to capitalize on market price movements, providing a hands-off approach to trading based on user-defined parameters.
Brahma Automations are fully self custodial. The user retains the assets on their Safe during the whole automation process, with no deposits in any contract by Brahma. The user grants permission to an automation SubAccount owned by their Safe to trigger the execution of the automated orders with the selected input token and amount on the preselected swap routes. Console automations execute batched automated transactions able to complete multiple steps in a single transaction.
Automation Overview
The LRST Automation function lets users set specific price thresholds that, when reached, trigger the atomic buying or selling of LRST through Balancer pools. This is achieved through live monitoring of the LRST's market price on the Balancer liquidity pools and the token issuing contract. By setting a deviation percentage, users can dictate the exact conditions under which the automation should execute orders, with a smart logic that performs the swap at the lowest possible slippage.
Balance Requirements: To engage with the Automation, users are required to maintain a balance of the automation token within their Console wallet (wETH for discount buying , ezETH or weETH for deviation selling).
Automation Threshold: Due to high mainnet gas fees, the minimum size for automation is set at 10ETH, to ensure that the operations are economical for users.
How It Works?
The operational flow of the automation process is detailed and user-centric:
Policy and Account Configuration: At the onset, the automation framework establishes a dedicated SubAccount for the user. Alongside this, a transaction policy is created and assigned to this SubAccount, which dictates the permissible actions and safeguards the automated process.
Automation Triggers: When the market price aligns with the user's pre-set price deviation trigger, the automation initiates a series of steps in a single transaction:
Transfer of the specified amount of tokens from the main account to the SubAccount.
Execution of the trade at the best available rate across multiple aggregator platforms like 1inch, 0x Matcha, or LiFi.
Re-deposit the swapped tokens back into the main account.
Dynamic Slippage Management: The automation intelligently manages slippage to secure the best possible transaction conditions. It begins with a tight max slippage of 0.1%, incrementally increasing through successive simulations and retries if needed. This process continues until it reaches the predefined max slippage limit of 5%, ensuring multiple attempts are made to execute the order at the most favorable rate.
Risks
While automation offers convenience and efficiency, it also comes with inherent risks that users must be aware of:
Price Reversion: There's a chance that after a price dip, the market quickly corrects itself, leading to a less than optimal swap rate. The automation has a delay time to monitor price before triggering an execution to confirm the mispricing isn’t erroneous.
Rapid Price Drops: If the price of LRST falls more rapidly than the automation's set parameters, the system may not execute the swap in time, leaving the position unchanged.
Availability of Swap Routes: Although having three aggregator routes greatly reduces this risk, there is still a possibility that suitable swap routes might not be available at the required moment.
Fees
The automation service is designed with cost-efficiency in mind:
Automation Setup Fee: Users should note that setting up the automation on the Ethereum mainnet entails a gas fee due to the deployment of a new Safe. These fees can vary and may be significant, but are only a reflection of the network charges. Brahma does not levy any additional fees for this service.
Execution Fee: Upon the execution of a trade, a modest fee 0.5% fee, inclusive of gas costs for the trade is applied. This fee is transparent and only applicable when the automation successfully completes a trade.
In Summary
Brahma's LRST Automation feature offers a sophisticated yet user-friendly solution for those looking to engage in automated trading based on specific market conditions. While the system is designed to be as efficient and secure as possible, users are encouraged to understand the associated risks and fees. As always, our team is committed to providing support and ensuring the best possible experience for our users.
For more detailed information, additional inquiries, or support regarding LRT Automation, please refer to our comprehensive documentation, consult the FAQs section, or contact our support team through the chat bubble in your Console.
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