Aave Autopilot Vault
Effortless Yield Optimization for AAVE
About
The problem it solves ## The Problem It Solves In decentralized finance (DeFi), managing lending and borrowing positions on protocols like **Aave** can be complex and risky: - Users must **manually monitor their collateral and debt** to avoid liquidation. - Health factors fluctuate with market prices, and a small dip can trigger **automatic liquidation**, causing users to lose funds. - Managing multiple assets or positions requires constant attention and calculation. - Manual adjustments are **time-consuming** and prone to human error. **Aave Autopilot solves these problems by:** 1. **Automating position management** - Users deposit their assets into the vault once. - The vault automatically supplies assets to Aave, tracks health factors, and adjusts positions when needed. 2. **Preventing liquidations** - The vault continuously monitors the **health factor**. - If it falls below a safe threshold, it automatically repays debt or rebalances collateral to maintain safety. 3. **Simplifying DeFi for users** - Users no longer need to constantly check Aave dashboards or calculate safe borrow limits. - Depositing and withdrawing funds becomes **simple and secure**, with yield automatically accruing. 4. **Reducing human error** - Automatic adjustments remove the guesswork from risk management. - Even inexperienced users can safely participate in lending and borrowing on Aave. **In short:** Aave Autopilot makes **DeFi lending safer, simpler, and more efficient**, allowing users to earn yield without constantly monitoring or managing risk.
How it's made
Challenges we ran into ## Challenges I Ran Into While building the Aave Autopilot, one of the main challenges I faced was **registering the smart contract with Chainlink Keepers** after deploying it on a forked mainnet using the Tenderly virtual blockchain. Chainlink Keepers are **automation bots** that can **call smart contract functions automatically** when certain conditions are met. In this project, Keepers would ideally **monitor the vault's health factor** and trigger the `checkAndAdjustPosition()` function if the health factor drops below the safe threshold, ensuring that the position is automatically rebalanced to avoid liquidation. The issue I ran into was that **Chainlink Keepers do not support virtual or forked blockchains**. This meant I couldn’t register the contract on the Tenderly fork to test the automation. To overcome this, I switched to using **public testnets (Sepolia)**. By deploying the vault to a testnet, I was able to register the contract with Chainlink Keepers and test the automation in a live environment. This workaround allowed me to fully implement and demonstrate the autopilot functionality despite the limitations of virtual blockchain networks.