Fetch.ai brings AI-powered tools to combat impermanent loss in AMMs and DEXs
Fetch.ai, a Cambridge-based artificial intelligence lab building an open-access decentralized machine learning network for smart infrastructure, announced today the launch of its DeFi Agents toolkit. Utilizing a user-friendly DeFi app, users will now, for the first time, be able to automatically withdraw liquidity from any Uniswap V2 and PancakeSwap pool based on predefined conditions.
To combat risks that liquidity providers (LPs) face when depositing liquidity, and more specifically; impermanent loss, Fetch.ai’s DeFi Agents app allows users to customize stop-loss parameters on decentralized exchanges. Currently, Stop-Loss agents can automatically withdraw user funds from liquidity pools; if the exchange rate between the two tokens falls to a predetermined level.
The Fetch.ai team plans to extend the functionality of the DeFi Agent tool to enable automatic liquidity withdrawal and deposit when token sentiment goes below a certain threshold, move liquidity of ERC-20s or BEP-20s to a defined range if the price is breached (in Uniswap V3), and remove liquidity if ETH fees are becoming too high in a pre-set period of time.
“Intelligent automation has the potential to transform the end-to-end experience of the DeFi applications we use today. Rather than constantly monitoring price action and having to manually withdraw liquidity; Fetch.ai DeFi Agents simplify and streamline that whole process for LPs. By improving upon the current experience for LPs on popular DEXs like Uniswap and PancakeSwap; we have created the catalyst for the adoption and usage of DeFi applications.”
– Humayun Sheikh, CEO of Fetch.ai
Through Fetch.ai’s DeFi Agent dashboard, users will be able to track and update their agents, access information on their Uniswap and PancakeSwap pool pairs and manage the triggers that were created.
Fetch.ai’s DeFi Agents are primed to support further customizations that include:
- Swap support: allows a swap to be performed at a given threshold for Uniswap v2 and PancakeSwap pools.
- APY Monitoring: will withdraw liquidity if APY is less than a specified amount.
- ETH fund management I: Deposits funds in a contract and uses it to automatically top-up one-or-more pools.
- ETH fund management II: Allows agents to swap ERC-20s or BEP-20s for ETH if funds drop below a predetermined level.
- Strategy Creator: Creates IFTTT (If This Then That) strategies for pool deposits/withdrawals.
- Portfolio management (Uniswap v3): Defines a weighting for a sector (e.g. oracles, AI, NFTs) and implements an ETF-like strategy (similar to market-weighted Balancer pool).
- Private Uniswap v3 strategy: Hides strategies behind the agent.