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DeFi Saver Knowledge Base
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      • Are there fees?
        • Are there any costs that are not immediately noticeable?
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      • How does Automation work?
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    • Recipe Creator
      • What are Flash Loans?
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      • Overview of Yearn
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      • Why is a smart wallet needed for using Smart Savings?
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      • Managing existing portfolios using Smart Savings
      • The difference between APR and APY
      • Are there any security risks?
    • Bridge
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      • What are Limit Orders?
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    • Aave
      • Aave Dashboard
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      • How does Aave Automation work?
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      • What are Flash Loans?
      • How can I long or short assets using Aave?
      • Staking Aave tokens
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      • How can I swap my collateral or debt in Aave?
      • Migrating your Aave position(s)
      • Pendle Principal Tokens (PTs) on Aave
    • CurveUSD
      • What is LLAMMA in CurveUSD?
      • How do you create a loan in CurveUSD protocol?
      • Does CurveUSD charge any fees?
      • Is there a standard (hard) liquidation in CurveUSD?
      • What are bands in CurveUSD?
      • Why do I need a Smart wallet for CurveUSD?
    • Compound
      • Compound Dashboard
      • Can I manage my existing Compound lending/borrowing portfolio using the Compound dashboard in DeFi S
      • How to earn and withdraw COMP tokens
      • How can I tell how much interest I will earn or have already earned using Compound?
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      • Liquity Dashboard walkthrough
      • What is a Trove?
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      • How to stay protected from redemption risk in Liquity
      • How do Liquidations work in Liquity?
      • What are the key benefits of Liquity?
      • Does Liquity charge any fees?
      • What is a Stability Pool?
      • What is the "Debt-in-Front" value in Liquity?
      • How can I earn LQTY tokens?
      • Why do I need a Smart wallet for Liquity?
    • Liquity V2
      • Intro to BOLD
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      • Revenue Distribution and Forkanomics
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      • DeFi Saver-supported Features
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      • Managing the Dashboard
      • Automation options for MakerDAO
      • What is a CDP and why should I be interested in opening one?
      • How do Boost & Repay work?
      • How does CDP Automation work?
      • Can I transfer my MakerDAO Vault to a different address?
      • Can I manage MakerDAO Vaults created using other apps at DeFi Saver?
    • Morpho Blue
    • Reflexer
      • Reflexer Dashboard walkthrough
      • How can I start borrowing or leveraging using Reflexer?
      • What makes Reflexer unique?
    • Spark
      • Spark Dashboard walkthrough
      • What is sDAI?
      • Liquidations in Spark
  • Legal
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  1. Features
  2. Automation

How does Automation work?

PreviousAutomation FeesNextWhen are Automation transactions made?

Last updated 1 year ago

By enabling any of our automated strategies, a user gives the DeFi Saver Automation smart contracts the rights to make adjustments on their position - but only once the user configured trigger condition is met, and fully limited by the user's configuration.

If we take Automated leverage management, for example, an auto-repay can only be executed for a user's position once their current ratio drops below their configured ("repay if below") ratio. If the system were to attempt to execute a repay before this trigger condition is met, the transaction would fail.

On top of this, there's also on-chain verification of transaction outcome, meaning that the transaction execution will complete successfully only if the user's target condition is met. In the case of an auto-repay this means that the "repay to" ratio needs to be reached at the end of the transaction.

Once any automated strategy 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 how an auto-repay works: (Note: this illustration specifically applies to an older automation architecture, though it still provides a good conceptual overview.)

For latest technical details, you can always check the , as well as the .

development docs
smart contracts source code