COTI Integrates Chainlink Keepers Into Armadillo To Automate Impermanent Loss Protection Payouts

COTI’s COTI/USD latest announcement revealed that Armadillo, powered by CVI, would be using Chainlink LINK/USD Keepers on Polygon’s MATIC/USD network to reinforce impermanent loss protection.

What Happened: COTI has announced that it will be leveraging Chainlink Keepers, a means to automate smart contract functions, to secure and cost-effectively automate payouts to compensate for the impermanent loss incurred by liquidity providers. This endeavors to completely automate payouts to liquidity providers.

Decentralizing its payout occurring allows the platform to be operated by the same pool of tested time. Thus, Chainlink’s security and infrastructure support and safeguards that Armadillo’s impermanent loss protection USDC USDC/USD payouts are executed efficiently, timely, and with minimized trust.

Chainlink Keepers provides enhanced security, an easy-to-use platform, optimized efficiency, and decentralized execution. Armadillo serves as the only individual protocol being customizable, non-custodial, decentralized on-chain protection, and multi-chain protection.

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When asked about the benefits offered by patterning with Chainlink Keepers, in comparison to other smart contract automation platforms, Yoni Neeman, Chief Innovation Officer at COTI, responded  “Chainlink Keepers allow us to provide a fully trustless solution for users. Whenever protection reaches its expiration time, users automatically receive a payout for any IL they incurred on their liquidity, straight to their wallet address in the form of USDC! Payout is done in a fully decentralized manner via Chainlink Keepers.”

Furthermore, when asked how Armadillo looks to provide secure loss protection to its users, Neeman responded “The protection is fully decoupled from the liquidity being protected, which is quite counterintuitive in DeFi. The solution in essence tells users - We do not want your liquidity, you can keep it wherever it is while taking only your protection on Armadillo. This is a key point as it means users have no counterparty risk to their liquidity! Armadillo covers the IL wherever the liquidity is - It can even be staked in a different protocol.”