Cryptocurrency bear markets are known for their recessions and liquidations for investors who trade with leverage. On top of that, decentralized finance projects, or DeFi, can be targeted by hackers or fail, resulting in huge losses for investors of their tokens. Now the new software aims to alert investors in real time to potential risks to their positions.
Users and managers of two such services, HAL and Aldrin, explain. HAL is a Web3 data infrastructure tool that allows companies or traders to track, control and run data. HAL recently launched Avalanche Simple Notifications API (AVAX), which allows blockchain users to automate risky position notifications. Meanwhile, Aldrin is the first fully verified decentralized exchange, or DEX, on Solana (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 with Pangolin (PNG), Sushiswap (SUSHI), Aave (AAVE) as well as wallet monitoring and more. Additionally, TraderJoe is coming soon, as well as the top 10 Avalanche ecosystem apps in General,” says Rossi.
Meanwhile, user HAL, who wished to remain anonymous, told Cointelegraph:
“I use AAVE and HAL directly integrated with them, which allows me to be notified if my position there is at risk; without updating their Dashboard, I can quickly take action.”
An anonymous user added: “I may also want to be the first to know when something new comes up, and to do this, HAL allows me to keep track of every new smart contract deployed by the developer I follow, so I can start my research faster and Stay up to date”.
Regarding token price volatility, Hisham Khan, founder and CEO of Aldrin, explained that it can be very difficult to make trades manually and get a decent enough price. “If you’re trading smaller or even mid-cap tokens, the downside when Bitcoin or Ethereum breaks certain support levels is crazy: you can lose 70% of your profits within 48 hours,” Khan said.
He gave an example of rebalancing a portfolio of 25 tokens, which takes up to 30 minutes if done manually, but presumably only a few seconds if done using Aldrin’s rebalancing feature. “The automation features provided by Aldrin, such as Rebalancer and automatic rebalancing while providing liquidity in pools, save me a lot of time,” commented an Aldrin user who wished to remain anonymous.
Like all DEXs, Aldrin faces potential security risks. But according to Khan, Aldrin has been fully vetted and will therefore be better placed to deal with those risks. He added:
“There is always the risk of fluctuating exposure to liquidity providers. Projected earnings […] can be false or fraudulent if the underlying token is not in Aldrin pools […]but this is clearly stated as a disclaimer for users.”