In our project we decided to mitigate one of the most painful part for DeFi user - CDP liquidation. Our project is non-custodial CDP management service that provides what we call Multi-Layered CDP protection in order to protect collateral as much, as its possible. Multi-Layered CDP protection - is a mechanic, that allows DeFi users to set up and arrange tokens from their wallets, that could be used to automatically recover desired collaterization ratio whenever there is a danger of CDP liquidation. There are already CDP rebalancing solutions in DeFi market, where your position could be rebalanced by selling some piece of collateral. But what if user don't want to sell his collateral in a first place and sleep well without monitoring prices? So our feature - Multi-Layered CDP protection allows for user to put any tokens from his portfolio to our CDP protection service and arrange that tokens by priority via layers. Whenever CDP collaterization goes critical, our service will automatically sell some tokens from user's wallet(approved transferFrom) in order to restore collaterization to normal, or sell some collateral and rebalance with flashloan, if there are no tokens left. One of the best use-cases for Multi-Layered CDP protection is using tokenized derivatives, especially PUT Options(like Opyn or Hedgic) as most prioritized protection layer, and Ethereum as a collateral for CDP. So when Ethereum price goes down, the price of layered PUT Option tokens goes up, so they could be effectively used to protect CDP from liquidation, profit on Ethereum volatility, and make user's CDP literally >>>Immortal<<<
How It's Made
Immortal Protection smart contract is coded on Solidity. It's crossprotocol, interacts with: Aave Smart Contracts in order to manage user's CDP UniSwap V2 Smart Contracts as liquidity provider for layered token liquidation and flashloan provider for CDP rebalancing.