Both companies claim to allow traders to react in real time to their high-risk crypto positions.
For investors who are trading with leverage, crypto bear markets are known for severe downturns and liquidations. Furthermore, decentralized finance, or DeFi, businesses might be targeted by hackers or experience rug pulls, resulting in massive losses for token investors. New software aims to warn investors about potential threats to their investments in real time.
Users and executives from HAL and Aldrin, two such services, explain. HAL is a Web3 data infrastructure platform for tracking, monitoring, and triggering data for businesses and traders. HAL just announced basic API notifications on Avalanche (AVAX), a blockchain platform that aims to allow customers to automate unsafe position notifications. In the meanwhile, Aldrin is Solana’s first fully audited decentralized exchange, or DEX (SOL).
With wallet monitoring, users can inform anyone on any channel of suspicious DeFi actions on an address, according to Marco De Rossi, co-founder of HAL. “Hundreds of Avalanche users are already using Pangolin (PNG), Sushiswap (SUSHI), Aave (AAVE), wallet monitoring, and other features. TraderJoe, as well as the top 10 Avalanche ecosystem apps in general, will be available soon “Rossi agrees.
Meanwhile, an unnamed HAL user informed the press, “I use AAVE, and HAL immediately integrates with them, allowing me to be notified if my position there becomes at risk; without having to refresh their dashboard, I can then take action quickly.”
“I may also want to be the first to know when anything new comes out,” the anonymous user continued, “and for this, HAL allows me to follow every new smart contract issued by a developer I follow, allowing me to begin my research sooner and stay up to date.”
Regarding token price volatility, Aldrin’s founder and CEO, Hisham Khan, noted that manually executing trades and getting a reasonable price can be tough. “If you’re exposed to smaller or even mid-market size tokens, the downside is crazy when Bitcoin or Ethereum breaches specific support levels; you can lose 70 percent of your gain in 48 hours,” Khan added.
He gave the example of rebalancing a portfolio of 25 tokens, which might take up to 30 minutes if done manually but only seconds if done with Aldrin’s rebalancing tool. “Aldrin’s automation capabilities, such as the Rebalancer and auto-rebalance when supplying liquidity in pools, save me a lot of work,” said one Aldrin user who preferred anonymity.
Aldrin, like all DEXs, is vulnerable to security threats. However, Khan claims that Aldrin has been thoroughly audited and will thus be better equipped to combat those threats. He continued, ” “Liquidity suppliers are always subject to the danger of temporary loss. If the underlying coin is not under Aldrin pools, the anticipated returns may be misleading or frauds, however this is made explicit to users as a disclaimer.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.