Crypto bear markets are known for their downturns and their liquidations for investors who trade with leverage. In addition, projects, decentralized finance or DeFi, can become the target of hacks or be ravaged by carpet pulls, which can lead to huge losses for investors of their tokens. Now, new software is trying to warn investors in real time about potential risks to their positions.
Users and executives of two such services, HAL and Aldrin, explain. HAL is a Web 3.0 data infrastructure tool that allows businesses or merchants to track, monitor and activate data. HAL recently launched simple API notifications on Avalanche (AVAX), which allows users to automate notifications of high-risk positions on the blockchain. Meanwhile, Aldrin is the first fully controlled decentralized exchange, or DEX, on Solana (SOL).
Marco De Rossi, co-founder of HAL, explained that users can notify anyone on any channel about suspicious DeFi activity at a wallet-monitored address. “We already have hundreds of Avalanche users playing with Pangolin, Suhiswap, Aave and also wallet monitoring and much more. In addition, TraderJoe is coming soon, as well as the Top 10 Avalanche ecosystem apps in general,” says Rossi.
Meanwhile, a HAL user, who wished to remain anonymous, told Coin-Crypto:
“I use AAVE and HAL integrates directly with them so I get notified if my position there is compromised; without having to refresh their dashboard I can take action quickly.”
The anonymous user added: “I may also want to be the first to know when something new comes out, and for this HAL allows me to track every new smart contract implemented by a developer I follow, that way I can do my research faster and stay informed.”
As for the price volatility of tokens, Hisham Khan, founder and CEO of Aldrin, explained that it can be very difficult to execute trades manually and get a pretty decent price. “If you are exposed to smaller or even mid-market cap tokens, the downside when bitcoin or Ethereum breaks through certain support levels is insane; you can lose 70% gains in 48 hours,” Khan said.
He cited the example of rebalancing a portfolio of 25 tokens that can take up to 30 minutes if done manually, but reportedly only seconds if done via Aldrin’s rebalancing feature. “Aldrin’s automation features, such as the Rebalancer and auto-rebalance in providing liquidity in pools, save me a lot of time,” said one Aldrin user, who asked to remain anonymous.
Like all DEXs, Aldrin faces potential security risks. But according to Khan, Aldrin is fully controlled and thus would have more strength to fight those risks. He added:
“There is always the risk of a permanent loss risk to which liquidity providers are exposed. The expected returns […] may be fake or scam if the underlying token is not under Aldrin pools […] but this is made clear as a disclaimer to the users.”