How does Automation work?

Written by Nikola J.
Updated 1 year ago

By enabling Automation, a user gives the Automation smart contracts the rights to make adjustments on their position, but any possible adjustments are fully limited by the user’s configuration.

For example, Automation can only execute an auto-Repay for a user’s position if their current ratio is below their configured (Repay from) ratio. If the system attempts to make a Repay in any other case, the transaction would fail.

Once Automation is enabled for a certain position, the Automation bots start actively monitoring it so they can execute any needed adjustments as soon as the configured thresholds are reached.

Illustration of Automation architecture for MakerDAO.

Assets supported for use in Automation are all assets that are supported by the chosen protocol. Automation also supports positions with multiple assets either supplied or borrowed (i.e. in Compound and Aave) and in such positions it will make any auto-adjustments using highest value supplied and borrowed assets.

Note that we recommend running Automation on Compound and Aave positions with one asset supplied and one asset borrowed, as each additional asset used increases gas costs slightly and can potentially result in unwanted assets being used for auto-adjustments.

Did this answer your question?