DeFiAT; Decentralized Finance and Trading

This proposal contains ideas to empower Defi with Reactive Network and also adding an automatic trading option as an innovative idea. To be more clear about my idea, I chose Balancer Defi as it has already many flexible and innovative pools. With Reactive Network and its Smart Contracts, there could be more options for both improving already built pools and creating new ideas for new pools.

• Balancer Composable Stable Pools: Reactive Network and Smart Contracts can be used to make more balance for paired tokens, for example, tokens that need to be pegged 1:1, e.g. Wrapped Staked ETH and ETH. No other Relayer contract is needed for this purpose and it would save many gas fees. Reactive Smart Contracts can do all of rebalancing, swapping, and other things needed to be sure that 1 WstETH always be 1 ETH.

• Balancer Boosted & Linear Pools: With the help of Reactive, more balance can be provided for the changes in spot price (that is applied in linear math). A Reactive Smart Contract can get spot prices even from different chains to rebalance pools automatically if needed. Besides preminted Balancer Pool Tokens (BPT), by using Reactive Network there will be no worrying about instability in liquidity and prices.

• Balancer Managed Pools (and introducing new Dynamic Weighted Pools): Managed pools contain a wide range of innovative ideas. My idea is about improving weighted pools that I call “Dynamic Weighted Pools”. By implementing Reactive Smart Contracts there could be many different options for users to take intelligent strategies to handle different situations and change the pool weights automatically. Here comes another innovative idea too about implementing different trading strategies into Reactive Smart Contracts to change weights or even add/remove tokens to the pools. Reactive Smart Contracts can be implemented for the purpose of Circuit Breakers and Smart Order Routes too.

• Introducing new DeFiAT Pools: Different trading strategies or bots can be implemented in Reactive Smart Contracts to control weights and balances in Balancer Dynamic Weighted Pools. Also, there could be an option for users that already have some trading knowledge and want to save some profits in Defi; implementing their own trading strategies in Reactive Smart Contracts to control their tokens in Dynamic Weighted Pools.

Conclusion

Reactive Network and Smart Contracts have provided many innovations for the DeFi world. I have already participated in ParsiQ bounties and Defi projects’ bounties. Balancer DeFi has already provided innovative flexibility in their pools for the users. I found that it would be a perfect usage for Reactive Smart Contracts to improve already built pools and also create new innovative pools in Balancer. Thanks to the ParsiQ team for giving me this opportunity to propose my idea. By Reactive Network, I can see that one of my past ideas about more incentivizing DeFi pools and adding trading strategies to them can come to reality more easier now.