PowerPool
  • powerpool overview
    • PowerPool
      • PowerPool DAO Story
      • Value Proposition
      • Use Cases
      • CVP Token
      • Vision 2027
    • Blockchain Automation
      • Glossary
    • PowerAgent Stats
    • How to contribute
    • Contracts and Links
  • Power Agent
    • 🎯PowerAgent features
    • 🏛️Architecture
      • ℹ️Agent
      • ℹ️Keeper
      • ℹ️Job
        • Full Specification
    • 📜User Guides and Instructions
      • ❓I Want to Automate my Tasks
        • Job Registration Guide
      • ❓I Want to Become a Keeper
    • ℹ️Scenarios
    • ⌛Old Pages
      • Installation Guide (Old)
        • Prerequisites
        • DAppNode Installation
        • Registering in PowerAgent
        • Installing PowerAgent Package on DAppNode
        • Standalone Installation
        • Chain-specific configs
      • Keeper (Old)
        • Keeper Registration and Update
        • Keeper staking, withdrawal, and deactivation
          • Keeper activation and deactivation in PPAgentV2RANDAO
        • Keeper assignment and release in RanDAO realisation
      • Job (Old)
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      • 📑Testnet Rules
      • Slashing
        • Copy of Slashing
      • Task Reward and Gas Compensation
        • Fees and income sources
        • Copy of Task Reward and Gas Compensation
  • PowerPool Incentives
    • PowerPool Points Program
  • Security
    • Bug Bounty
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  • Research
    • Automation Networks Research
      • Approaches on Keeper Selection
      • On-chain Random Number Generation
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      • 🌊PowerPool & PowerAgent Automation Network
      • Value Proposition-PowerPool
    • PowerAgent v2.1
      • Keeper Selection
      • Hooks
  • Resources
    • Website
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    • Medium
    • Discord
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    • Telegram
    • Governance Voting
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  • Legacy & Deprecated
    • Index Products
      • $YLA: Yearn Lazy Ape
        • Invest (ZAP) in YLA with low fees
        • Instant YLA mint via USDC
        • $CVP Boost Program
        • Redeem YLA
        • YLA Onsen Liquidity Mining [deprecated]
      • $BSCDEFI: BSC DeFi Pool/Index
        • Guide: Mint $BSCDEFI with $BNB
        • Guide: Multi-Asset $BSCDEFI Mint
        • Guide: PancakeSwap LM Farming
        • Add $BSCDEFI to MetaMask.
        • Redeem $BSCDEFI
      • $ASSY: Aave, SushiSwap, Synthetix, and Yearn Index
        • $CVP Boost Program
        • Underlying Token Staking
      • $PIPT: PowerIndex Pool
      • $YETI: Yearn Ecosystem Index
      • Market Price vs Fair Value
      • About ZAP
    • CVP reward program
      • How to create a DCA flow in Partitura
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  1. powerpool overview

Blockchain Automation

Smart contracts don't execute themselves.

PreviousVision 2027NextGlossary

Last updated 1 year ago

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DeFi 1.0 protocols developed on Ethereum were designed to be supplemented by pseudo-anonymous agents (known as ). Such agents perform event-triggered actions such as liquidating under-collateralized positions in MakerDAO/Compound/AAVE or re-aligning ever-changing prices across AMM pools via arbitrage. Autonomous agents acting as Keepers were a way to make DeFi 1.0 primitives robust and decentralized. Permissionless actions of such Keepers are generally triggered by economic incentives (significant price differences, liquidation premiums, etc). Therefore, keeper-type agents typically extract a disproportionate value from the protocols and their users.

The evolution of DeFi 2.0 and beyond requires more autonomous automation to perform routine on-chain tasks, but not necessarily motivated by large incentives. We expect that going forward DeFi will demand broader, and less costly automation solutions, dramatically expanding the role of keeper-type agents towards becoming more generalized "Automation Agent Networks".

PowerPool believes that automation networks will be crucial for enabling the next generation of automated, multi-chain/layer, intelligent yield optimizing DeFi protocols.

What transactions need to be automated?

There are primarily two types of transactions that can be classified by the nature of economic incentives needed to keep the protocol functioning:

Type 1: self-incentivized transactions such as collateral liquidations containing direct monetary incentives for the executor. This means that a transaction is attractive for permissionless execution since it results in certain profits;

Type 2: transactions that are not incentivized by design such as calculating TWAP prices or updating protocol parameters. This means the economic and technical nature of the transaction doesn’t offer any profit for the executor. However, we should note that it is technically possible to add some kind of profit for the execution of any transaction.

Network
Keepers