Stake DAO Integrates Chainlink Keepers to Help Automate Strategies
We’re excited to announce that we have integrated Chainlink Keepers on Ethereum mainnet. By integrating the industry-leading decentralised oracle network, we now have access to a secure and cost-efficient smart contract automation service to help us automate key smart contract functions.
Decentralising in this way is meaningful to us as it aligns with one of our core goals: to create complete systems that can scale and function without the need for active management. We have integrated Chainlink Keepers to help us automate fee distribution, deploy user funds into strategies, and automatically compound rewards. This integration helps us to take another step towards becoming fully decentralised whilst rewarding users and improving performance.
We decided to use Chainlink Keepers because they are operated by the same pool of time-tested, provably reliable node operators that currently help secure tens of billions of dollars across DeFi. Chainlink’s time-tested infrastructure helps ensure that every fee distribution is executed on time in a trust-minimised manner.
What are Stake DAO strategies?
Stake DAO strategies are built on top of the Curve Finance protocol, leveraging the veCRV owned by Stake DAO to boost the yield for all our users.
Let’s do a deep dive into the Passive USD strategy to better understand how it works:
This strategy invests USD stablecoins (DAI, USDC, USDT) deposited by the users into the Curve Liquidity Pool (3pool). The strategy earns trading fees based on the pool trading volume, and it also earns additional CRV token rewards from Curve. The strategy rewards are periodically compounded to maximise returns. Initially the deposit of users’ USD stablecoins and the compounding of the rewards was done manually, to optimise gas fees, but as the number of strategies increased it slowly became less effective and too time-consuming. Chainlink Keepers allows us to automate both depositing and compounding in a very effective way.
What are Chainlink Keepers?
Chainlink Keepers is a decentralised service purpose-built to manage tasks on behalf of smart contracts. Chainlink Keepers serve as decentralised automation bots that 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 Keepers include:
- Decentralised Execution — Chainlink Keepers provide reliable, trust-minimised automation with no single point of failure, mitigating risks around manual processes and centralised servers.
- Increased Efficiency — Projects that use Chainlink Keepers are able to reduce time spent on DevOps, minimise operational overhead, and streamline development workflows.
- Enhanced Security — Chainlink Keepers sign on-chain transactions themselves, enabling automated smart contract execution without exposing private keys.
- Reduced Costs — Chainlink Keepers perform efficient off-chain computation for smart contracts, allowing developers to build feature-rich dApps at lower costs.
More about Chainlink
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
More about Stake DAO
Stake DAO is a non-custodial platform that unlocks value and liquidity from decentralised markets. Both protocols and users can use Stake DAO to maximise their yield with passive strategies, access capital-efficient voting power, deposit into DeFi options vaults, and more.
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