This repo contains smart contract prototypes and mocks and a test suite showcasing how the InstaDapp DSA could use Gelato to automate the execution (or casting) of its Spells (connectors) based on arbitrary Conditions.
The first iteration, written by Gelato here, started with a simple spell, Move DAI lending from DSR to Compound, explained here.
The second iteration, written for the ChainLink hackathon 2020, implements a Debt Bridge, composed of an interface composed with React, and an SDK to interact with InstaDapp and Gelato. This Repo contains the SDK and the relevant Smart Contract and tests.
Maker and Compound are two financial services that allow a user to deposit ETH as a collateral and borrow another token up to a certain ratio (66% for ETHDAI).
For example, if the ETHDAI price is 300, and I deposit 10ETH in a Maker Vault, I can borrow 300 x 10 x 0.666 = 2000 DAI. This costs a yearly rate. Now if Compound offers a better rate for the same financial product, I might want to move my borrow position to a Compound vault.
A Debt Bridge uses a Gelato Automation to automatically refinance a Maker Vault to a Compound position (and vice versa), depending which is the most profitable for the user.
This reuses two existing deployed InstaDapp Connectors (ConnectMaker and ConnectCompound) to provision Gelato with a refinancing sequence, that would only be triggered if one is better than the other.
The refinancing sequence is the folowing:
- Instapool: borrow DAI
- MakerDAO: payback DAI
- MakerDAO: withdraw ETH
- Compound: deposit ETH
- Compound: borrow DAI
- Instapool: return DAI
An interface for that can be found here
The difference is that thanks to Gelato, someone deploying a vault from our interface wouldn't need to refinance manually, as Gelato executors will trigger the call when the conditions are met.
This app can serve as a template for many more interesting lending applications. We included two more examples in this repository:
The createGelatoOptimizerAave function can setup an automation to refinance to an Aave lending position.
To avoid losing the liquidation fee, one can use Gelato to automatically liquidate a Maker Vault before the -50% mark on the ETHDAI price. This is showcase in the createGelatoAutoLiquidator function.
The following contracts were added to showcase the automation of the Spell:
MockInstaMakerResolver.solandMockInstaCompoundResolver.sol: to normalize CDAI.supplyRatePerBlock and dsr values to a per second rate in 10**27 precision
This uses contracts deployed by Gelato and whitelisted by InstaDapp:
-
ConditionCompareUintsFromTwoSource: a generic Gelato Condition that allows you to read and compare data from 2 arbitrary on-chain sources (returndata expected to be uint256 and normalized => hence MockInstaMakerResolver and MockInstaCompoundResolver). This Condition was used to compare DSR to CDAI rates and in the test suite we showcase how a change in the CDAI rate (it going above the DSR) can trigger an automatic rebalancing from MockInstaMakerResolver to MockInstaCompoundResolver via DSA Connectors. -
ProviderModuleDSA: this is needed for any Gelato integration. It tells Gelato how the execution payload should be formatted. -
ConnectGelato: (now whitelisted by instaDapp and deployed on the mainnet) this is a Connector needed for the DSA to be able to submit Tasks to Gelato.
To see what's going on in the back check out the contracts folder and make sure to check out 2_mv-Debt-Maker-Compound.test.js, to see an end-to-end test showcasing the prototype. To do so follow the steps below:
- Clone this repo
- Put your INFURA_ID and INFURA_PRIVATE_KEY in .env
- yarn install
- npm run build
- npm run test
This repository exports an sdk used by the app that will allow the user to execute the following actions with MetaMask:
- create an InstaDapp DSA
- open a Maker vault (and borrow dai)
- create a Gelato setup for automatic refinancing
Allows to refinance without liquidity
- instaPool Flash Loan
- Aave Flash Loan
The more the merrier
- Aave
- Use a condition contract for more than 2 financial services