DeCommas Protocol — The automation layer for chain-agnostic DeFi strategies
As DeFi is getting ready for its next leg up, we’re seeing many new tools, platforms and protocols arise. Capabilities and functionalities that we’ve seen in more centralized environments, or didn’t exist at all, are right now being built in a decentralized, trustless and transparent manner. Whilst DeFi is developing due to this growth spurt, fragmentation is increasing.
Within this fragmented space DeCommas will become the automation layer to provide users with simple “one-click” access to automated, decentralized, chain-agnostic, yield- and ROI-generating strategies.
Quite a mouthful, let’s dissect this:
- Simple “one-click” access → Let’s face it, DeFi is already hard as it is. We want to deliver the most accessible user interface. Sure, you’ll need to know how to create a wallet, but let’s make the rest of the process as frictionless as possible.
- Automated, decentralized → The DeCommas protocol should succeed in automating strategies’ decision-making in a trustless and composable manner, as this is what gives web3 it’s competitive advantage, making it disruptive and fast-moving
- Chain-agnostic → It does not matter in which chain or protocol an opportunity arises, the protocol should be able to help users leverage all of them.
- Yield- and ROI-generating strategies → All of this we do for a simple end goal; strategies that generate yield or ROI, while users take a hands-off approach.
In short, the DeCommas way of automation in DeFi will unlock opportunities that were previously largely inaccessible or infeasible. The opportunities could range from complicated basis trading strategies to more simple automated buy and hold accumulation strategies.
In this article we’ll be explaining all about DeCommas current state, its vision for the future, and how that will be brought to life. Consider this a “living” document, as it will be updated as we build, learn and grow.
Our vision for the future: the platform to access the worlds best DeFi strategies
In traditional finance, access to trading products in all shapes and forms has been becoming more democratized, within the boundaries of what traditional finance can do. Many forms of “vaults”, strategies and funds have emerged, and traditional institutions as well as new FinTech incumbents have opened up ways to get exposure to these instruments.
In DeFi, these possibilities are unfortunately still scarce. We believe that in order for DeFi to flourish, we’ll need to develop an ecosystem of tools to enable easy access to DeFi strategies, bringing developer and end-user together on one unified platform.
In order for this platform to succeed an ecosystem of tools and protocol needs to be developed, and this is exactly what we’re so focused on right now. There’s two sides to this equation:
Demand-side: The end-user, traders, or “retail investors”
In order for any kind of user to be able to use the DeCommas platform, a toolset enabling onboarding, access, insights, discovery and control needs to be built;
Discovery and control
Tools that enable users discover, access and manage DeFi strategies, currently our strategies module.
- Strategies: Discover, enable and manage “1-click” DeFi-strategies.
Strategies will be, for most people looking at DeCommas, the core functionality of the platform. It’s where all the strategies available on the platform can be found and enabled to build up an automated DeFi portfolio. Currently you’ll see multiple “test in prod” strategies to showcase the prowess of the DeCommas automation layer.
In the future, community-built strategies of all kinds will populate this page. Expect basis trading strategies, structured DeFi products, index bundles, yield-hoppers and any innovative ROI- or yield-generating strategy our community will come up with.
Onboarding and access
- Bridges: Bridges allows users to bridge assets from one chain to the other saving fees in the process.
- Multichain swap: With Multichain Swap, DeCommas users can quickly move assets from one blockchain to another and use these assets in DeCommas’ strategies.
- Portfolio: A comprehensive tool for monitoring your blockchain wallets, and the assets associated with it.
- Stats: Get a grasp for opportunities across multiple DEXes in the blink of an eye with stats. This will also be a place for DeCommas statistics soon.
We believe that items such as stats, portfolio and multichain swap are enablers; we need to provide the tools that help users on their way to what they’re looking to achieve; building a profitable DeFi portfolio, hands-off. These tools will ensure a smooth onboarding process, taking as many of the friction that still exists in DeFi away for more users.
Discovery and control is where the magic happens. Right now our strategies module is filled with DeCommas’ strategies to showcase our automation layer. In the future, we’re foreseeing this to be a full-fledged marketplace, where users can find the strategies they’re looking for based on their goals and their beliefs on how to shape their portfolio.
That brings us to the second side of the equation:
Supply-side: Strategy devs, quants, and DeFi-wizards alike
Whilst our current strategies module is populated with strategies developed internally or in close collaboration with the DeCommas community, we believe that the true power of developing yield- and ROI-generating DeFi strategies lies within the broader DeFi-community.
To enable a community of builders to bring their strategies to retail investors and the like, a playground for development, deployment and management of strategies is under development. In order to get here, we’re working on:
- The automation layer itself → To enable safe, scalable and accessible decentralized automation, we’ll need proper infrastructure. This requires not only the logic of automation being captured by a set of smart-contracts, but also the creation of a trustless procedure to propagate automations with a relayer network.
- A user interface for creations → We believe that creators need to be able to create without being distracted by coding. We’ll need a building-block style editor for delivering strategies, from concept to deployment.
The picture is meant only for illustrative purposes of “bundle creator”, and should not be considered an actual strategy.
- A marketplace for discovery → Not only users, but also developers will benefit from a user-friendly marketplace that allows for deployed strategies to be discovered and activated.
With this suite of tools, we’ll bring supply and demand together on the DeCommas Marketplace.
Stepping stones for bringing this vision to life
Rome wasn’t built in one day, so let’s assume DeCommas won’t be either. In the last 12 months we’ve built a team of 20+ experts to deliver this vision. So far the first Web3 tools have been made available on app.decommas and active showcase strategies are already live.
Now, during these undoubtedly turbulent times, we’re continuing to build on delivering on our vision. This is what we’re working on at this very moment:
The DeCommas automation layer consists of several components, making up a permissionless, censorship resistant and fast infrastructure enabling any type of automation events a user might need.
High-level, these are the building blocks making up the automation layer:
- Relayer network → A tendermint-based network of nodes that trigger events on any chain required to perform automated strategies, based on on- or off-chain conditions. This network also holds the ledger of executed (or failed for execution) events as agreed by network consensus order.
- Action smart contract → This contract receives trigger events from the relayer network and executes strategies as specified in the building blocks making up this strategy.
- Building blocks → Smart contracts deployed on different chains with a basic logic of triggering events, such as swaps, borrowing, repayment of a debt, etcetera. These building blocks are used for creating automated strategy within our strategy builder.
- Strategy builder → The UI that helps creating financial products without the use of any code. Under the hood of Strategy builder there’s a toolkit we’ve named Strategy compiler.
- Strategy compiler → The strategy compiler helps to compile, validate and deploy user strategies to the relayer network for execution.
- On-chain router → A router following trigger events and moving funds.
And of course, all of the UX for end-users to gain access to these strategies makes up our DeCommas Strategy page. We firmly believe this architecture will provide users with a best-in-class experience, no matter if it’s a DeFi degen or a chad with just a basic understanding of trading. All are welcome!
Our partners on our journey
In this rapidly evolving DeFi space, we believe it’s crucial to build together. Fortunately, DeCommas is in good company. We’re a project within the 3Commas family of brands, which just raised $37M.
3Commas was launched in 2017, and has developed into a household name in cryptocurrency trading since. The 3Commas ecosystem is known for its crypto trading bots operating on 20 centralized crypto exchanges, offering no code trading automation to make professional level trading available for all. DeCommas was started in the R&D department of 3Commas, and has since started operating as a separate business unit.
Furthermore, we’re thrilled to be working alongside blockchain powerhouses Target Global, Alameda Research and Jump Crypto as our investors. Our work so far has resulted in DeCommas being awarded grants from Perpetual Protocol, Serum and Mango Markets totaling 80,000 USDC.
DeCommas — The DeFi-automation layer for easy access to chain-agnostic strategies
In a nutshell, we’re working towards a feature where DeFi users can discover the yield- and ROI-generating strategies that suit their needs, and build their portfolios from the ground up with as little friction as possible, without the need to “babysit” their assets.
For this we’ll be creating the infrastructure and marketplace attracting the brightest developers of DeFi-strategies, providing them with the tools they need to deliver their automated strategies to the masses.