DeFi solution offers 24/7 real-time check on liquidation risk

By:
on Jul 14, 2022
  • The Open Notification Protocol allows for free mobile alerts on on-chain events.
  • Alpaca Finance has integrated the protocol seeing 1,000 active notifications.
  • The notification app is available for download on Google Play and Apple Appstore.

Getting a loan with your crypto assets as collateral in decentralised finance (DeFi) has been made so easy, with protocols such as MakerDAO, Compound, Aave, and Alpaca Finance leading the way. On-chain, all things look smooth as billions of dollars make it into these protocols around trending prospects like yield farming.

But as events have shown, taking loans, especially with the kind of leverage thrown around the DeFi ecosystem, does come with risks. It’s not taken long for crypto lending to become sort of a buzz word for all that has gone wrong in recent months, particularly after some leading centralised companies hit massive turbulence amid the crypto crash.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

To help DeFi platforms provide a system that allows one to continuously check the health of their loan, defi.org open sourced a solution that among others, give customers mobile alerts 24/7 and in real time.

The Open Notifications Protocol

The Open DeFi Notification Protocol, a decentralised and free notifications system from defi.org that offers the solution to the risk of liquidation problem.

The open initiative, powered by Orbs network, gives DeFi users access to mobile alerts on on-chain events, via a ‘position health” that they can keep tabs on to stay ahead of liquidation risk.

Any project within the ecosystem can tap into the protocol through a simple JavaScript implementation on Github and help alert users on their collateralised positions.

The video below shows how to download the app and set up the Notification Protocol. The app is available on Google Play and the Apple AppStore.

Alpaca Finance is among the first DeFi protocols to integrate the Notification Protocol, both on the BNB Chain and Fantom networks. The lender has seen over 1,000 active notifications set up since the integration in early February.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
10/10
68% of retail CFD accounts lose money