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DeFi Saver Knowledge Base
  • Welcome to DeFi Saver Knowledge Base
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      • Boost & Repay
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      • Can I access DFS created positions using other apps?
      • Why did we switch to Safe?
    • Wallet Compatibility
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      • Error: "An issue was detected with this transaction that would cause it to fail" - what to do
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      • I cannot make any transactions using DeFi Saver after using Furucombo?
      • Avoiding MEV with your transactions
  • Features
    • ETH Saver
      • How does ETH Saver work?
      • Profit tracking & how does it work
      • Positions in ETH Saver
      • Are there fees?
        • Are there any costs that are not immediately noticeable?
    • Automation
      • Automation strategies
      • Requirements for using Automation
      • Automation Fees
      • How does Automation work?
      • When are Automation transactions made?
      • Are there risks when using Automation?
    • Recipe Creator
      • What are Flash Loans?
      • Is Recipe Creator safe to use?
      • Pre-made recipes / Recipe Book
      • How can I reuse output of previous functions?
    • Loan Shifter
      • Collateral Swaps
      • Debt Swaps
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      • Notification Monitors
      • How do I set up Notify?
    • Simulation Mode
    • Smart Savings
      • Overview of Yearn
      • Overview of Convex
      • Overview of mStable
      • Why is a smart wallet needed for using Smart Savings?
      • How to start lending funds and earning interest using Smart Savings?
      • Managing existing portfolios using Smart Savings
      • The difference between APR and APY
      • Are there any security risks?
    • Bridge
    • Exchange
      • What are Limit Orders?
      • What is DCA?
  • Protocols
    • Aave
      • Aave Dashboard
      • Aave versions comparison
      • How does Aave Automation work?
      • Can I manage my existing Aave lending/borrowing portfolio using the Aave dashboard?
      • What are Flash Loans?
      • How can I long or short assets using Aave?
      • Staking Aave tokens
      • How can I tell how much interest I will earn or have already earned using Aave?
      • 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?
    • Fluid
      • Intro to Fluid
      • Liquidity Layer
      • Lend Protocol
      • Vault Protocol
      • DEX Protocol
      • DeFi Saver-supported Features
    • Liquity
      • Liquity Dashboard walkthrough
      • What is a Trove?
      • Liquity Redemptions
      • 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
      • Borrowing Rates and Redemptions
      • Collateral Ratios
      • Troves as NFTs
      • Revenue Distribution and Forkanomics
      • LQTY Staking
      • DeFi Saver-supported Features
    • Chicken Bonds
    • MakerDAO
      • 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
    • Terms and Conditions
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On this page
  • How to configure Automation?
  • What are the fees for using Automation?
  1. Protocols
  2. MakerDAO

How does CDP Automation work?

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Last updated 1 year ago

Once enabled, Automation will actively monitor your CDP/Vault and automatically increase or decrease leverage when price of the underlying collateral (e.g. ETH or BAT) changes.

Leveraging and deleveraging is done using our signature Boost and Repay functions.

Boost is applied once your ratio grows above the configured maximum ratio. When this happens, more DAI is generated and instantly used to obtain more ETH and add it to the CDP. This increases your ETH exposure, while also increasing your DAI debt and decreasing your ratio.

Repay is applied once your ratio drops below the configured minimum ratio. When this happens, part of the collateral (e.g. ETH) from the CDP is taken out, instantly swapped for DAI and the DAI used to pay back debt. This increases your ratio, while decreasing your DAI debt as well as your ETH exposure.

Note that Automation never has access to any funds in your Ethereum wallet account. All adjustments are made solely using the collateral within the CDP/Vault.

How to configure Automation?

In order to enable Automation, you need to have a CDP/Vault on the Multi-collateral DAI version of the MakerDAO protocol with at least 40,000 DAI debt.

If you meet these requirements, you can go ahead and .

Automatic Repay, which provides you with liquidation protection, is triggered as soon as your ratio drops below the configured minimum (the value labeled "If ratio falls below").

Automatic Boost, which provides you with automatic leverage increase, is triggered as soon as your ratio grows above the configured maximum (the value labeled "If ratio goes over").

What are the fees for using Automation?

The service fee for each automated adjustment made by the system is 0.3% of the Repay or Boost amount.

The transaction fee for each adjustment is also charged to the user, but only up to a maximum of 800 Gwei. Anything above this is covered by us.

This doesn't mean that DFS Automation will not send transactions at times when gas prices are above 800 Gwei. It's just a hard cap for the transaction fee charge, where no more than 800 Gwei (* gas used) can be charged to the user.

If you want to test how certain Automation configurations would perform in different market conditions, you can do so using the at DeFi Explore.

If you have any additional questions, please reach out to us either via the on-site chat or by joining the .

Simulation tool
DeFi Saver Discord
enable Automation