Barn Bridge makes use of Chainlink Keepers to automate the rebalance function in their SMART Exposure product. Chain link Keepers compute users’ portfolio exposure off-chain to trigger on-chain swaps to maintain fixed ratios (e.g., 50% asset A, 50% asset B).
ChainLink, founded by Sergey Nazarov, facilitates the largest collection of decentralized services that power the world’s hybrid smart contracts. Chainlink developers can connect any blockchain using high-quality data sources from other blockchains and also real-world data.
Managed by hundreds of thousands of people managed by a global, decentralized community, Chainlink is developing fairer models for contracts. The network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among several others.
Barn Bridge is the Tokenized risk protocol. They build derivative products that manage asset exposure to fluctuations in interest rates, market prices, predictive market odds, loan default rates, commodity prices, and a seemingly infinite number of market-based fluctuations. They are creating the first cross-platform derivative protocol for all kinds of fluctuations. Their major focus is on the interest rate and price volatility derivatives.
The Barn Bridge has integrated Chain Link Keepers who are live on Ethereum mainnet. Barn Bridge will leverage the Chainlink Keepers in SMART Exposure, which is their upcoming product that will provide a convenient way to get a fixed exposure ratio to an asset pair.
A novel and cost-effective re-balancing mechanism manage this exposure. Barn Bridge will help leverage the Chainlink Keeper Network to automate the rebalancing function in a decentralized, high-uptime, and cost-effective manner.
Also, SMART Exposure makes it easy for users to effortlessly maintain a specific risk exposure to an underlying ERC-20 token pair. For instance, someone who is bullish on ETH compared to Bitcoin might want to hold a target allocation of 75% ETH and 25% wBTC in the portfolio. Anytime the prices of the underlying tokens change, SMART Exposure will automatically rebalance the tokens to maintain the ratio. This eventually provides the investors with a convenient way to continue with a risk-adjusted strategy without the problem of continuous and time-consuming management of token exposure.
To ensure the target exposure ratio, the smart contract rebalancing transaction should be initiated when the target exposure ratio deviates beyond an acceptable threshold. When the permissible threshold exceeds, Chainlink Keepers will initiate the rebalancing transaction. The Chainlink Keeper network facilitates strong guarantees for timely rebalances by leveraging a proven approach that has made it the oracle network of choice to secure billions of dollars in value for several of the largest DeFi protocols.
Chainlink Keepers permit smart contracts to outsource regular maintenance tasks like transaction rebalances to a decentralized network of nodes, which serves as a trust minimized and hyper-reliable automation bot.
A tweet from Sergey Nazarov’s son – An Integration a day keeps the bears away.