Alpaca Finance integrated this Notification Protocol at the beginning of the year. This integration has been a great help for DeFi users, especially those who use Alpaca Finance.
Alpaca users are now able to set up “position health” notifications that give an alert when the safety buffer of leveraged positions drops below the specified threshold. Users can now monitor their leveraged positions 24 hours a day without having to worry about missing any notifications.
Users are empowered to immediately take action based on an alert issued.
What is Open DeFi Notifications Protocol (ODFIP)?
Open DeFi Notification Protocol (or Open DeFi Notification Protocol) is a community-led initiative, which was developed by defi.org. It allows users to receive free mobile notifications from decentralized sources about any on-chain happenings. The Orbs Network powers this protocol.
The Defi Notification Protocol can be accessed by anyone, so any person can add new notifications. You only need to create a JavaScript web3 class responsible for extracting notifications from the data in the chain.
Open DeFi Notification Protocol App, which is the app for this protocol, is available on both Google Play & Apple AppStore.
What is Alpaca Finance?
Alpaca Finance has the largest lending platform for leveraged yield farm (LYF) on Binance Smart Chain. It has a total locked value (TVL) in excess of $800 million.
Alpaca loan borrowers can take out collateralized loans for high yielding farming positions. These loans allow users to grow their assets and ultimately increase their yields.
Opening a leveraged yield farming account comes with certain risks, including the possibility of liquidation. To avoid liquidation, borrowers need to find a way to make sure they don’t exceed the liquidation threshold. This triggers an immediate liquidation of all debt positions.
Notifications in real time for LYF positions
Alpaca calculates the safety buffer for the entered positions and displays the potential liquidation risk. It is not helpful to display it because you might not be able to see it all the time.
This is where the Open DeFi Notification Protocol Integration comes in. Alpaca Finance customers can now receive real-time notifications from the Open DeFi Notification Protocol integration. These notifications will include real-time updates on real-time events on the chain and information related to the calculated safety buffer.
Alpaca also added a notification widget to their Portfolio page user interface, allowing users to easily set up alerts.
DeFi users need real-time notifications, especially when money or liquidation is involved. DeFi users will never miss a crucial alert thanks to Alpaca Finance’s integration of the Open DeFi Notification protocol.
