Patch Notes 1.1: Automation

About a month ago, we launched a basic version of Abacus which included a UI for low level interactions on Goerli testnet. Since then, we’ve set out to surround those low level interactions with automation to offer users a choice in how to interact with Abacus. These patch notes will highlight these new options; subscriptions and strategies.

Subscriptions

Subscriptions offer a pool specific form of automation. This means that a user can choose to automate their interactions within a specific Spot pool.

Steps:

1. Submit order structure: appraisal range, appraisal amount, lock time, and execution gas offerings.
2. An executor bot will execute a purchase order on the users behalf with their requested structure and receive the execution gas offering to cover their gas paid.
3. If there are any closures during the position time, an executor bot will be watching to automatically make necessary adjustments to the position.
4. Finally, when the user’s position matures, an executor bot will sell the position. When sold, all funds from the position and profits earned will be redeposited in the escrow account and re-used for further purchases.
5. A user can cancel a subscription at any time, in which case the executor bot will stop making purchases (but continue managing any remaining positions to maturity until they are sold).

This is an intermediate level of automation because a user is still required to choose a specific pool to interact with and an order structure to be used.

Strategies

Strategies are general, collection specific vaults that provide a framework for which executor bots are allowed to submit transactions. When a new strategy is created, a collection is specified and any pool that has been greenlit (proven that it’s within the boundaries of the collection choice) is an eligible recipient of the funds deposited into that vault.

Steps:

1. User creates a strategy with the following parameters:
2. Pool status: whether the receiving pool needs to be actively borrowed against or not.
3. Currency: the appraisal denomination currency that must be used in the pool.
4. Collection: the vault will only be able to deposit funds in pools that only have this collection in it.
5. Lock time: the length of time the vault will lock funds in the pool.
6. Max value: the highest appraisal value that the vault will use in a pool.
7. Min rate: the minimum interest rate that a pool must have to be eligible for the vault to deposit funds.
8. Min size: the minimum amount that the vault is allowed to deposit in a pool.
9. Users deposit funds into the strategy vault if they’d like exposure to it.
10. Executor bots will look for available options among all existing Spot pools.
11. If a pool matches the vault’s strategy parameters, an executor bot will put together an order and execute it on behalf of the vault.
12. Executor bots will watch for any necessary adjustments and make them to keep all vault positions up to date.
13. As positions mature, executor bots will sell them and any profits or principle will be redeposited into the vault to be re-used for later.
14. A user can withdraw funds as long as the amount of idle liquidity in the vault is at least the size of their withdrawal request.

Strategies are a form of full automation for users that aren’t interested in finding a pool that they’d like and creating their own order structure. Rather, users can simply deposit in vaults that they agree with and have the rest taken care of until they’re ready to come back and take profits.

Patch Goal

The goal of this update is to enable all types of user interactions with Abacus. A more technical user may choose to interact at the lowest level in which they’re manually creating and managing their own orders. Another type of user who wants the similar low level interaction but doesn’t want to actively manage positions, can use the subscription service. Finally, for users that’d like to passively interact with Abacus, the strategy option makes it as simple as choosing a strategy vault that they agree with and depositing/withdrawing funds as they please.

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