The problem Aave Autopilot Vault solves

The Problem It Solves

In decentralized finance (DeFi), managing lending and borrowing positions on protocols like Aave can be complex and risky:

• Users must manually monitor their collateral and debt to avoid liquidation.
• Health factors fluctuate with market prices, and a small dip can trigger automatic liquidation, causing users to lose funds.
• Managing multiple assets or positions requires constant attention and calculation.
• Manual adjustments are time-consuming and prone to human error.

Aave Autopilot solves these problems by:

1. Automating position management

   • Users deposit their assets into the vault once.
   • The vault automatically supplies assets to Aave, tracks health factors, and adjusts positions when needed.

2. Preventing liquidations

   • The vault continuously monitors the health factor.
   • If it falls below a safe threshold, it automatically repays debt or rebalances collateral to maintain safety.

3. Simplifying DeFi for users

   • Users no longer need to constantly check Aave dashboards or calculate safe borrow limits.
   • Depositing and withdrawing funds becomes simple and secure, with yield automatically accruing.

4. Reducing human error

   • Automatic adjustments remove the guesswork from risk management.
   • Even inexperienced users can safely participate in lending and borrowing on Aave.

In short: Aave Autopilot makes DeFi lending safer, simpler, and more efficient, allowing users to earn yield without constantly monitoring or managing risk.

Challenges I ran into

Challenges I Ran Into

While building the Aave Autopilot, one of the main challenges I faced was registering the smart contract with Chainlink Keepers after deploying it on a forked mainnet using the Tenderly virtual blockchain.

Chainlink Keepers are automation bots that can call smart contract functions automatically when certain conditions are met. In this project, Keepers would ideally monitor the vault's health factor and trigger the checkAndAdjustPosition() function if the health factor drops below the safe threshold, ensuring that the position is automatically rebalanced to avoid liquidation.

The issue I ran into was that Chainlink Keepers do not support virtual or forked blockchains. This meant I couldn’t register the contract on the Tenderly fork to test the automation.

To overcome this, I switched to using public testnets (Sepolia). By deploying the vault to a testnet, I was able to register the contract with Chainlink Keepers and test the automation in a live environment. This workaround allowed me to fully implement and demonstrate the autopilot functionality despite the limitations of virtual blockchain networks.