# I'm providing liquidity

## <img src="https://3594873091-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCUsr6ssg69scPnMJR3tw%2Fuploads%2FBh4BqWpoJz48Ud8CXE3g%2Fpendle.png?alt=media&#x26;token=418edac7-c445-42ce-a814-4b07789f9a65" alt="" data-size="line"> <mark style="color:$info;">I use</mark> Pendle <mark style="color:$info;">to provide</mark> liquidity [<mark style="color:$info;">(LP)</mark>](#user-content-fn-1)[^1]

{% hint style="info" %}
Let’s take a scenario where you provide liquidity for **USDe** on **Pendle.**
{% endhint %}

### What you need to monitor

A Pendle LP position is closer to set-and-forget compared to holding [**PT**](https://otomato-2.gitbook.io/otomato-docs/product/getting-started/otomato-for-pendle/im-getting-fixed-yield) or [**YT**](https://otomato-2.gitbook.io/otomato-docs/product/getting-started/otomato-for-pendle/im-increasing-my-point-exposure). However, you still need to monitor your **position health** to protect your capital.

### What Otomato watches for you

Otomato **automatically detects and monitors** your LP positions and **alerts** you only when something **relevant** happens:

<details>

<summary>Security incident</summary>

If Pendle or Ethena has a **security issue**, your funds might be compromised.

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

**Example notifications:**

* *"Potential security issue reported affecting Pendle.* [View source](https://t.co/xxxx)*"*
* *"LookOnChain flagged unusual activity related to USDe.* [View source](https://t.co/xxxx)*"*
* *"100B$ USDe just have been minted by Ethena."*

**Learn more**

Learn how Otomato manages security-related alerts [here](https://otomato-2.gitbook.io/otomato-docs/product/getting-started/otomato-for-security-alerts).

</details>

<details>

<summary>Underlying depeg</summary>

If USDe **depegs**, it creates two scenarios for LP providers: a [**temporary**](#user-content-fn-2)[^2] **loss** if it drops below $1, or an **opportunity for larger profit** if it rises above $1. Both situations require quick decisions.

Otomato **continuously monitors** underlying asset prices and alerts you as soon as a **meaningful deviation** is detected.

**Example notifications**

* *"USDe is trading at 0.982."*
* *"USDe is trading at 1.034."*

</details>

<details>

<summary>PT maturity</summary>

Once a Pendle market reaches **maturity**, you no longer earn yield through your LP position. At this point, you need to either roll into a new market or claim back your underlying assets.

Otomato **sends you a reminder** when the market expires so you don't forget to redeploy your capital.

**Example notifications**

* *"The pendle USDe (11th feb) market has expired. Your position isn't earning yield anymore."*

</details>

### 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](https://t.me/OxClement).

[^1]:

[^2]: Or not, depending on the reasons