ICHI Integrates Chainlink Automation to Power Deep-Liquidity Vaults.

ICHI
ICHI
Published in
3 min readFeb 10, 2023

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We’re excited to announce that ICHI, a Uniswap V3 market maker, has integrated Chainlink Automation into ICHI Vaults on Ethereum and Polygon. We are leveraging Chainlink Automation to securely and cost-efficiently trigger ICHI Vault concentrated liquidity rebalances. As a result, Vault depositors can benefit from efficient liquidity concentration, more Vaults, and increased trading fees.

The Chainlink Automation Network is operated by the same pool of time-tested, provably reliable node operators that currently help secure tens of billions of dollars in DeFi, even during record levels of network congestion and extreme volatility. The proven infrastructure of Chainlink helps ensure that every rebalance is executed on-time in a trust-minimized manner, giving users additional guarantees that it will function exactly as intended.

Currently, decentralized exchanges (DEXs) like Uniswap v3 lack sophisticated and decentralized market-making infrastructure, resulting in inefficiencies compared to centralized exchanges (CEXs). As a result, most trading volume still occurs on CEXs due to their access to institutional market makers. However, this comes with the risks of trusting a custodian, such as the chance of fraudulent behavior.

We solve this with ICHI Vaults, a trustless market-making protocol that enables the use of sophisticated algorithmic strategies on Uniswap V3. Liquidity providers can use Vaults to manage their funds in a capital-efficient, non-custodial, and transparent manner. All activity occurs on the blockchain, providing transparency for protocols to monitor performance.

To further provide liquidity providers the ability to create this deep, on-chain liquidity, we needed a streamlined solution to scale our rebalance function. We are excited to integrate Chainlink Automation into the future of our Vaults.

Chainlink Automation is a decentralized service purpose-built to manage tasks on behalf of smart contracts. Chainlink Automation leverages decentralized, hyper-reliable, and economically incentivized automation nodes to wake up smart contracts when they need to perform critical on-chain functions, which usually take place at regular time intervals (e.g., every day at the same time) or based on external events (e.g., when an asset hits a specific price).

Some of the notable features of Chainlink Automation include:

  • Highly reliable, performant, and decentralized automation — Chainlink Automation ensures transactions are identified and confirmed quickly even during periods of heavy network congestion by leveraging Chainlink’s battle-tested transaction manager.
  • Time-tested infrastructure that helps save costs — Chainlink Automation enables us to eliminate in-house automation infrastructure costs, reduce resources spent on DevOps, and increase speed and efficiency.
  • Built to enable faster scaling — Chainlink Automation enables us to scale faster and avoid the challenges that come with building and maintaining the infrastructure needed to reliably automate across multiple chains.
  • Unlocks new use cases — With smart contract automation, we’re able to explore new use cases and unlock capabilities that would otherwise not have been possible.

About Chainlink

Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.

About ICHI

ICHI is a trustless market-making protocol that enables the use of sophisticated algorithmic strategies on Uniswap V3. Grow any token with low-slippage, on-chain liquidity using ICHI’s Vaults.

Learn more by visiting the ICHI website, Medium, Twitter, Telegram, or Discord.

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