Many DeFi users were hit incredibly hard by Luna’s sudden collapse. Some lost all of their life savings, and investments, and lamentably, there were reports of suicides by investors. DeFi’s TVL halved, and many even considered the moment a capitulation for the emerging sector.
What Caused Investors to Lose Money?
Unlike traditional finance, where there are complex orders created, such as Stop-Losses, or Take-Profits, DeFi has limited to nil automations. Every investor in crypto has, at some point, lost 20% of their portfolio’s value while sleeping. Wild price swings are extremely common, and in DeFi, there is nothing to protect against this.
On 10th May, Luna dropped about 90% in 8 hours — a timeframe investors could theoretically have been sleeping, working, or relaxing during. Issues like this make managing a DeFi portfolio a 24/7 job — which is not just bad from a financial perspective, but horrendous for the users’ mental health. It encourages users to compulsively check their portfolio, and to never switch off.
DeFiHelper’s solution
DeFiHelper’s automations protect users from such price swings. DFH offers users the ability to program automations that act as Stop-Losses, and Take-Profits, as well as (in the near future) Trailing Stop-Losses and Take-Profits.
These would kick in in the event of a wild price drop, as seen with Terra. Not only this, but with our ‘trailing Stop-Loss’ feature, you can be protected against wild price swings, as your investment will only be automatically cashed-out if there is a short-term spike or crash.
DeFiHelper’s automations constructor is a flexible tool that allows you to create any kind of automations using five conditions (Contract Metric, Native Token Balance, Optimized Staking, Gas Price Fluctuations, Schedule) and two kinds of actions (Execute a Transaction and Send a Notification).
https://www.youtube.com/watch?v=5tUnwK77y8c
Thus, DeFiHelper solves two huge pain points for DeFi. Its automation saves users from huge financial losses, while also allowing them to relax, knowing that their portfolio is automated, and managed. Now, DeFi investors can finally fall asleep not worrying about waking up to having lost a significant amount of money.
If you are new to DeFiHelper, watch the introduction video:
https://www.youtube.com/watch?v=DkIH_DMhgcs
Disclaimer: Nothing in this article constitutes professional investment advice. Please do your own thorough research before making any investment decisions.