Impermax Integrates Chainlink Keepers to Automate Staking Reward Distributions
Impermax is pleased to announce that we have integrated Chainlink Keepers on Ethereum mainnet. Chainlink Keepers is a decentralized service that leverages secure and reliable off-chain computation to automate on-chain functions for smart contracts when preset conditions are met. To begin, we are leveraging Chainlink Keepers to automate staking reward distributions to IMX stakers whenever the reward is not claimed by anyone else for more than 6 hours. This will ensure that the reward is distributed to stakers at least every 6 hours.
We elected to integrate Chainlink Keepers because it’s a decentralized network made up of the same time-tested, professional DevOps that already run the infrastructure for Chainlink Price Feeds, which secure tens of billions of dollars in value for top DeFi protocols. Chainlink Keepers are optimized to perform advanced off-chain computations at low-costs with verifiable calldata, enabling our team to outsource automation of key processes in a trustless manner.
Impermax is a frictionless DeFi protocol that simplifies yield farming processes and decreases risk for users. Impermax allows users to indirectly provision liquidity to AMM protocols, removing the potential for impermanent loss while still offering increased yields for indirect liquidity providers (LPs).
Users can participate in indirect liquidity provisioning by depositing singular assets, which are then borrowed by liquidity providers on AMM protocols to increase their yield. The borrower takes the entire risk of impermanent loss by directly providing liquidity to liquidity pools, and contributes a portion of the LP rewards to repay the user. On the flip side, LPs on AMM protocols such as Uniswap and Sushiswap are able to leverage up their positions, increasing their working capital within pools for maximized rewards.
Introducing IMX Staking
Now, Impermax is launching our new product, IMX staking. The interest earned from borrowing and lending services will be used to buy back IMX, our native token, and distribute the tokens to participants who have staked their tokens on our platform. Stakers will receive xIMX tokens that represent their share of the pool, and can be redeemed anytime for an equivalent amount of IMX tokens.
Our staking system has 2 distinct smart contracts. The main smart contract facilitates staking, unstaking, and the distribution of IMX and xIMX tokens. The second smart contract functions as a reserves distributor, doling payouts to stakers while also registering inputs of tokens that have been bought back by the IMX protocol. The smart contract is designed to release an equivalent amount of tokens for 90 days until the reserve is exhausted, with an updated distribution rate whenever there is a newly registered input.
In order to create a frictionless user experience, we sought an automation solution that would allow the smart contract to consistently distribute staking rewards without any manual input. Unfortunately, smart contracts are unable to auto-execute. They need external entities, commonly known as keepers, to trigger their logic when predetermined conditions are met.
After examining various keeper solutions, we ultimately decided to use Chainlink Keepers because they provide several advantageous features:
- High Uptime — Chainlink Keepers are run by the same professional DevOps teams that have an established on-chain performance history of providing high reliability to Chainlink Price Feeds during extreme network congestion.
- Low Costs — Chainlink Keepers incorporate several gas-optimizing features that lower and stabilize the costs of automating maintenance tasks for users, most notably a rotating node selection process to prevent gas price auction wars.
- Decentralized Execution — Chainlink leverages a decentralized and transparent pool of Keepers to provide strong guarantees around secure contract automation, saving teams time and mitigating the risks around manual interventions or centralized servers.
- Expandable Computation — Chainlink Keepers perform off-chain computations and generate calldata for smart contracts, allowing developers to build advanced, trust-minimized dApps at lower costs.
Though we are beginning with automated rewards distribution, we plan to integrate Chainlink Keepers across the rest of our protocol to trigger other important functions such as liquidations, re-staking, and general smart contract upkeep.
“We’re relieved that solutions like Chainlink Keepers exist to outsource onerous processes required for decentralized, end-to-end smart contract management. Chainlink Keepers are a highly reliable, on-chain verifiable, and low-cost automation solution that removes frictions for our new staking product and enhances our platform functionality, leading to a simple and trustless DeFi experience for stakers,” stated Simone Rigolone, Founder of Impermax.
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.
Impermax.finance is an advanced DeFi platform that allows anyone to earn yield from liquidity providing with no impermanent loss. Using Indirect Liquidity Providing, farmers can lend funds to other farmers who use them to increase their earnings. The earnings are then shared between the lenders and borrowers.
Impermax is the only DeFi platform that effectively solves the problem of impermanent loss on decentralized exchanges, and allows borrowers to leverage their farming yields by up to 50x.
Impermax creates capital efficiencies across the DeFi industry by allowing risk-averse liquidity providers to transfer their impermanent loss risk to risk-tolerant providers for a premium.