Basic overview
DeFiChain
This represents your DeFiChain wallet consisting of an address and a vault.
Vault Maxi will create and manage your LM position. No need to create it yourself.
You can use one of the following wallets:
- DeFiChain light wallet app
- DFX app
- Desktop wallet with a Bech32 address
Ocean API
The Ocean API is an infrastructure hosted by DeFiChain (or other providers).
Via this API you are able to retrieve a lot of information of the blockchain without the need of running a full node yourself.
In Vault Maxis' case we use it to monitor your vault, access balances on your address and manage your configured liquidity pool.
Import to note is that Vault Maxi is not touching other vaults, which may exist on this address. Nor will it touch other liquidity pools. Only configured information will be used by Vault Maxi.
You can freely choose from all ocean providers.
AWS
Amazon Web Services (AWS) is the provider we decided to use, due to high security standards and a ton of different tools and features to use. You will need to create an account. Sadly a credit-card is required to create an account. For most cases using Vault Maxi is completely free. For example I am running five Vault Maxis and a command-center and I am still within the Free Tier of AWS.
Trigger
Every 15 minutes Vault Maxis' code will be triggered. Means every 15 minutes Vault Maxi will take care of your vault and check if something needs to be done.
Parameters
All information which is required for Vault Maxi to be able to execute is stored in a Parameter Store. Vault Maxi does read the information and write the state of the last execution.
Seed
You will need to create a parameter which stores your seed as a Secure String. Means your seed will be secured by encrypting it with your personal key.
Vault Maxi
After setting up your Vault Maxi it is important that you check if it's set up correctly. You can to this by executing a checkSetup. How this is done is described in our Guide.
You are able to define a collateral ratio range for your vault. For example 190% to 210%. Vault Maxi will keep your vault within this range.
If we keep it as simple as possible Vault Maxi is able to do following list of functionalities
- decrease exposure
- increase exposure
- reinvest
- communication
- strategies
Briefly about vaults and their collateral ratio. If your collateral drops in $ value or your loans increases your collateral ratio will decrease.
Decrease Exposure
If your next collateral ratio is below your defined range. In our example below 190%. It will remove liquidity from the configured liquidity pair and will pay back the removed tokens, therefore decreasing your loans and increasing your collateral ratio to the center of your defined range.
Increase exposure
If your next collateral ratio is above your defined range. In our example above 210%. It will take more loans and add new minted tokens to your liquidity pool.
Reinvest
If your threshold of DFI is met or exceeded in your address. It will automatically deposit it to your vault. The threshold and the reinvest itself are completely configurable to your desire.
Communication
Vault Maxi uses a Telegram bot to communicate with you. Means you need to setup a Telegram bot for yourself. A complete step-by-step how to can be found in our guide. Each action above will trigger a message. You can retrieve a message on each execution every 15 minutes too.
Strategies
Vault Maxi has two different mint strategies. There is not a strategy X is better than Y, everything depends on your current position and how you want to position within the DeFiChain ecosystem: