Published Dec 20, 2022
By Qredo Team
Automating DeFi with the Scalability Toolkit
Qredo is bringing digital asset custody into the age of automation with a new scalability toolkit.
This comprises three features that add functionality for:
Streamlining transaction workflows
Automating digital asset management
Web3 API Wallet 👨💻
The Qredo Web3 API Wallet enables you to build DeFi actions programmatically, then sign transactions with Qredo dMPC and submit them directly to the blockchain — without compromising on the security of your governance policies.
This unlocks multiple benefits:
Scalable access to DeFi
Automate your DeFi operations to make thousands of transactions per day, triggered by events such as blockchain transactions or price movements.
Transactions can be packaged up and submitted to the blockchain faster, enhancing the performance of rapid-fire trading strategies such as arbitrage between EVM chains.
Integration with your tech stack
Skip clunky DeFi frontends and bottlenecks, and submit transactions directly to smart contracts. Automate KYT calls to determine real time risk before execution.
Signing Agent 🤖
This open source software, which signs transactions, can be either initialized within managed services, or self-hosted within your own infrastructure — enabling you to stay in full control over your automated transaction flow.
By approving transactions automatically, the signing agent can:
Relieve signing fatigue
Automatic approval lifts the burden of having to manually approve dozens of transactions each day. (Coming soon: Qredo's open source library will configure the Signing Agent to govern the routing of transactions according to certain criteria — such as size, destination address, or originator.)
Streamline transaction flows
Repetitive workflows can be automated to enable the scaling of digital asset operations.
Reduce execution time
Trades can be made instantly, without waiting for Approvers to sign transactions.
Approvers can be added to all policies, creating an organization-wide circuit breaker that enables management to easily halt all desk activity at the same time.
Whitelisting is an optional security feature that restricts wallet interactions to predetermined blockchain addresses.
Once whitelisted addresses have been added to a wallet, only transactions to those whitelisted addresses will be passed on to the approval flow. Other transactions to addresses not on the whitelist will be blocked.
This boosts security by ensuring that wallets can only interact with trusted counterparties and protocols. For example, a DeFi fund might whitelist the smart contract address of their preferred lending protocol, thus preventing traders from borrowing assets elsewhere on untrusted protocols.
The Scalability Toolkit introduces whitelisting for Connected Wallets, in addition to the existing whitelisting function for Standard Wallets.
Scalability Toolkit Use Case: DeFi fund
Although these three features can be used separately, combining them unlocks powerful benefits.
For example, a DeFi fund could whitelist the smart contract address of an established decentralized exchange, preventing traders from accessing more risky venues.
The fund might also use the Signing Agent to automate the governance workflow, relieving the fatigue created by constantly manually approving transactions.
Finally, the fund could also take the Web3 API Wallet and automate the submission of transactions directly to the exchange smart contracts through their own fund management infrastructure.
To join the beta program and start testing these features, speak to a Qredo specialist.