Definotify
Introducing Definotify bot and a smarter way to monitor your lending positions on lending or CDP protocols.
There's a lot of excitement around decentralized finance (DeFi) protocols, especially lending/ CDP such as AAVE, Venus, Compound, Geist, Maifinance, MarkerDAO, Liquity, etc which offer new ways to earn interest on your crypto assets and take out loans. However, as with any new technology, there are always risks involved. One of the biggest risks in lending protocols is liquidation. This can happen if the value of your collateral falls below a certain threshold, and it can lead to you losing all of your assets.
When Do Liquidations Happen?
Liquidations can happen for a variety of reasons, but the most common one is when the value of the collateral falls below a certain threshold. This is known as a margin call, and it often happens when the price of the underlying asset falls sharply.
When a liquidation happens, it can often lead to a cascade of sales that can drive the price of the assets down even further. This can create a lot of volatility in the market and can lead to big losses for those who are holding the assets.
How to prevent a liquidation on your lending positions?
To avoid liquidation, you can raise your health factor by depositing more collateral assets or repaying part of your loan. For Defi users who keep a close eye on their accounts are always more proactive. Furthermore, you guys wan to have good sleep at night, if somebody would wake you up in the middle of the night to adjust your position when volatile time, it would be perfect. In reality, the cryptocurrency market is volatile hourly, and not everyone is always alerted to such consequences. One of the most popular ways today is to use alert notification services to keep you updated about market changes. We developed Definotify which is a monitor and notify service that could help you sleep well if you’re degen, and using lending/ CDP protocols. What we like the most about Definotify is that it supports rather lager of lending/cdp platforms on different chain such as Geist, Venus, Compound, Aave, Liquidy, MarkerDAO, etc; and no need to connect your wallet for controlling your asset.
You could register the service by accessing our website https://definotify.net and hitting the Register link.
Of course, if you want to know more detail how to register and use the bot, please take a looks the below tutorials.
https://www.youtube.com/watch?v=2dNzWB0jlas&t=21s
https://www.youtube.com/watch?v=SIqgex-MVgA&t=3s
I hope you find this topic handy and if you have any additional tips on protecting against liquidation, feel free to add in the comment section, we’ll be glad to update this article with more options in the future.
Website: https://definotify.net
Twitter: https://twitter.com/definotify
Youtube: https://www.youtube.com/channel/UCjgb33nLYQAcl6Afz7EMw3g
Telegram community: https://t.me/definotifychannel
Telegram bot: https://t.me/DefinotificationBot