On January 7, Autonomy Network, a DeFi protocol, announced the launch of a unique decentralized application (DApp) known as ‘AutoSwap’ on the Binance Smart Chain (BSC) blockchain network. The AutoSwap is considered as the first-ever DApp that stops losses, provides limit orders, prevents impermanent losses, executes arbitrary orders and provides recurring payments for decentralized exchanges like PancakeSwap that runs on the BSC blockchain.
AutoSwap is not just available on the Binance Smart Chain blockchain network. The DApp is also available on some major blockchains, such as Solana, Polygon, Avalanche and Ethereum that support decentralized application development. The launch of AutoSwap marks a significant development within the DeFi ecosystem. This is the first time when the DApp has become available for decentralized exchanges. Loss protection, stop loss and limit orders features were only available on centralized exchanges. Thus, the introduction of such features on decentralized exchanges enables DEX traders to boost returns and better manage risks without having to look at the screen 24/7. Also, Autonomy Network is an off-the-shelf decentralized automation protocol that enables crypto users to automate their orders to stay active even when the traders go to sleep.
Lack of automation solutions such as recurring payment, loss protection, stop losses and limit orders was a real problem especially with the rapidly growing trading volumes in decentralized exchanges. As a result, many decentralized exchanges have partnered with Autonomy Network to allow their users to experience the same features available in centralized exchanges. For instance, SokuSwap decentralized exchange has successfully integrated Autonomy Network on its Binance Smart Chain network. Pangolin decentralized exchange is integrating Autonomy‘s impermanent loss prevention, stop losses and limit orders features on its Avalanche network. Pangolin wants to improve its overall usability and to offer better risk management to users and liquidity provider tokens by integrating the Autonomy Network. Moreover, ApeSwap will soon integrate Autonomy-powered limit orders on its Binance Smart Chain network.
Autonomy Network is not just automating trading. It can also be integrated into DAO management tools, lending protocols, NFT projects and metaverse projects to create arbitrary actions to be triggered under arbitrary conditions. A perfect example is SushiSwap’s lending and margin trading platform Kashi, which has integrated the Autonomy Network to automate self-liquidations.
Lastly, crypto users need to understand such developments will occur before Autonomy Network launches its native token. The protocol is preparing for its Initial DEX Offering (IDO) that would enable the launch of its token next month.
How DeFi Is Transforming Business Financial Services
The development of the Autonomy Network protocol comes at a time when DeFi is significantly automating the financial sector. The use of blockchain technology is removing the need for counterparties and addressing risks through technology advancement. Currently, $2 trillion USD in digital currency exists under management. In addition, cryptocurrencies such as Bitcoin and Ether are becoming more widely accepted for payments. The DeFi firm, Compound Labs released USDC-based loans that guarantee a yield of at least 4%, which is much higher than traditional products. Besides that, many DeFi platforms provide cross-border access to capital with rates that are far better, which would have been otherwise unavailable. As a result, the transaction in the banking industry is starting to see DeFi’s potential to overhaul the inflexibility of current processes. The adoption of DeFi in transaction banking is opening up new capital opportunities for larger firms and increasing liquidity for small-and-medium-sized businesses. For instance, the US Bank and Morgan Stanley are now providing crypto products for their wealth management clients.
