I use AAVE to leverage loop

Let's take a scenario where you supply wstETH on AAVE, borrow ETH against it, swap the ETH for more wstETH, and supply again, repeating the loop to amplify your staking yield.

What you need to monitor

Leverage looping amplifies both your gains and losses. Your main risks are getting liquidated, the spread between staking yield and borrowing rate turning negative, and security incidents affecting Lido or AAVE.

What Otomato watches for you

Otomato automatically detects and monitors your AAVE looped positions and alerts you only when something relevant happens:

Obvious alerts

These are alerts that every AAVE user should monitor, regardless of strategy.

Bad debt / security incidents

If Lido or AAVE has a security issue, your looped position could be at risk.

Otomato surfaces security incidents as soon as credible signals appear so you can react quickly.

Example notifications

• "Potential security issue reported affecting AAVE. View source"

• "Lido node operator reported a key compromise. View source"

Learn more

Learn how Otomato manages security-related alerts here.

Depegs

If your leveraged asset depegs, your collateral value drops while your debt stays the same, pushing you closer to liquidation.

Otomato continuously monitors the correlated markets ratio and alerts you as soon as a meaningful deviation is detected.

Example notifications

• "stETH is trading at 0.992 ETH."

Liquidation risk

Leverage looping means tight health factors. Otomato monitors your health factor very closely and alerts you as soon as you approach dangerous levels.

Example notifications

• "Your AAVE health factor dropped below 1.03."

Governance actions impacting your asset

Governance proposals can change risk parameters, collateral factors, or asset listings, directly affecting your position's safety and profitability.

Otomato monitors AAVE governance and alerts you when proposals impact assets you've deposited.

Example notification

• "AIP-297: Governance proposal to freeze CRV market on AAVE v2. LTV will be set to 0%, preventing new borrows against CRV. View proposal"

Social monitoring

Major announcements from AAVE or Lido can impact your position or influence your decision to keep it open or close it. These updates are typically announced on Twitter.

Otomato monitors official social accounts and alerts you when our system believes it's significant enough to warrant your attention.

Example notifications

• "AAVE announced v4 deployment on Ethereum. View source"

• "Lido announced a faster stake-to-earn mechanism. View source"

Underlying yield change

The asset underlying yield is often what you're amplifying with your loop. When it drops significantly, your loop becomes less profitable.

Otomato tracks underlying yields and alerts you when your loop becomes unprofitable.

Example notifications

• "wstETH staking yield dropped from 2.7% to 2.3%."

Alerts for more advanced users

These alerts are valuable for users who want deeper protocol insights.

Supply cap change

Supply and borrow caps limit how much capital can be deposited or borrowed. When caps are reached, you can't scale your loop further.

Otomato alerts you when caps change for assets you're using.

Example notifications

• "AAVE increased the wstETH supply cap on Ethereum by 50,000 wstETH"

Improvements

We're continuously looking to add support for alerts the community is asking for. If you'd like us to add a new use case, reach out on telegram.