How to Use Safe-based Cobo Argus for DeFi Auto Farming and Risk Management

TL;DR: Cobo Argus, built on top of Safe{Core}, is the ultimate on-chain DeFi management solution to turbocharge your crypto game. Cobo Argus offers on-chain Role-Based Access Controls, and DeFi bots to auto-yield farm (helps you harvest rewards, claim tokens, swap them, or transfer them out), auto-adjust leverage (helps you top up to keep leverage ratios in check and avoid liquidation), and auto-withdraw your funds (helps you move your funds into safety at any danger such as a sudden drop in TVL) – all based on your own rules. Think more security, more flexibility, more efficiency – basically, more hustle. It’s your DeFi sidekick that never sleeps.

What is Cobo Argus

Cobo Argus leverages ‘Safe Plugins’ of Safe{Core} which enable any arbitrary logic to be added to an account, such as recovery mechanisms, session keys, and automations. Safe Plugins (previously known as modules) are incredibly powerful, self-containing smart contracts.

These externally deployed smart contracts augment the features of a basic Safe smart account by enabling any custom feature to be added – spending allowances, recurring standing orders, automations, social recovery, and many more. All of which can be designed on a granular level to meet the needs and specifications of specialized dApps, as well as their users: from individuals to DAO teams, web3 organizations, enterprises, and more.

Adding and removing a plugin requires confirmation from the Safe account's configured threshold number of owners. Events are emitted whenever a plugin is added or removed and when a plugin transaction succeeds or fails.

1. Cobo Safe (also known as Cobo Safe Plugin)

Cobo Safe is an open-source on-chain access control framework for smart contract wallets developed by Cobo, leveraging the modularity and composability of Safe Plugins to enable customizable logic. By configuring Cobo Safe’s risk settings, DeFi operations can be efficiently delegated to bots or done with a single signature. Cobo Safe also supports granular permissions at both function and parameter levels, giving you precise control over your team members' on-chain activities to keep them in check and dodge potential risks.

2. Cobo Argus

Building on the foundation of Cobo Safe, Cobo Argus offers a power-packed suite of features – it’s the secret sauce to a critical challenge in DeFi: how to balance security and efficiency when interacting with DeFi protocols using funds managed through multi-signature wallets. Think DeFi authorizations, intelligent DeFi bots, batch token approvals, risk monitoring and alerts, and more.

Cobo Argus’ intuitive and user-friendly interface makes setting up DeFi bots to automate specific tasks a breeze. Users can also easily delegate roles with various DeFi permissions to specific team members who can then efficiently carry out their tasks with just a single signature.

For the advanced DeFi users out there, Cobo Argus supports programmatic access in addition to a web interface, giving you even greater control and automation.

Figure 1: Cobo Argus Architecture

How to Use Cobo Argus for Auto Farming and Risk Management

Cobo Argus introduces an army of ready-to-use DeFi bots: Farming Bots, Withdrawal Bots, and Leverage Bots, each tailored to perform specific DeFi tasks. With the whole crew of bots, you can effortlessly optimize your yield farming strategies and manage risks. No more constant manual intervention or sleepless nights.

Figure 2: Bots Marketplace

For auto-farming, set your triggers for the Farming Bot – time intervals, gas fees thresholds, rewards amount thresholds – and let it automatically harvest rewards, claim tokens, or swap them for you when the triggers are activated. It’s DeFi on cruise control.

Figure 3: Setting Triggers for Farming Bots
Figure 4: Setting Tasks for Farming Bots

And risk? Cobo Argus has your back. DeFi’s a jungle where unexpected protocol potholes could take you on a rollercoaster of sudden price dives. Cobo Argus keeps a close watch over your staked positions. It continuously monitors liquidity pools and key metrics such as loan-to-value (LTV) ratio, pinging you at once when things go south. Plus, when your predefined triggers are breached, the Withdrawal Bots are ever-ready to swing into motion and swiftly whisk your funds out of the vulnerable pool into safety. It is your 24/7 vigilant DeFi guardian, protecting you from unforeseen danger in the dynamic world of DeFi.

Figure 5: Setting Triggers and Tasks for Withdrawal Bots

Other Use Cases: Cobo Argus for Fund Management

Beyond auto-farming, Cobo Argus also tackles the trust and risk control issues in fund management – a topic that hits home for investment fund's general partners (GPs) and limited partners (LPs) venturing into DeFi.

Picture this: LPs, as the owners of the Safe{Wallet} and the funds in it, can seamlessly grant fund management permissions to GPs. GPs get to securely interact with DeFi protocols using LPs’ funds, minus the need for time-consuming and cumbersome multi-signature processes that might cause opportunities to be missed. Furthermore, Cobo Argus ensures GPs can only play within their designated scopes of authority, effectively harmonizing efficiency and security.

Figure 6: Customized on-chain permissions on function level

That’s not all. LPs can also write an authorizer smart contract to implement finely detailed risk policies. This robust risk control tool puts LPs in the driver’s seat to mitigate potential security bumps, like sneaky internal frauds or unintentional GP blunders. In fact, Cobo Argus, as a bridge of trust, can extend its value to any other scenario with similar structural trust issues.

Case Study: Curve Finance’s Tricrypto pool

Before Curve Finance took its wild ride, the Tricrypto pool was one of the deepest liquidity pools in DeFi for ETH, WBTC, and USDT tokens. Users can swap between these tokens on Curve Finance with low fees and nearly zero slippage, and receive Curve LP tokens as well as earn juicy yields by depositing ETH, WBTC and USDT on the platform. Users can also stake their Curve LP tokens onto Convex Finance to further boost their yields.

Fast forward to the recent exploit. Curve Finance takes a hit, casting a spotlight on the importance of comprehensive risk management. Traditionally, implementing yield farming strategy requires laborious multi-signatures and manual operations, while managing risks demands perpetual monitoring. Now, with Cobo Argus, there is a one-stop shop of DeFi authorizations and bots to get rid of old-school fuss. Completing DeFi operations using a single-signature? Check. Automate staking, harvesting, topping up, withdrawing, and more using bots? Check.

Imagine this: You found yourself caught in the midst of the Curve Finance exploit, security alarms ringing – But, there's no need for you to break a sweat. Because you've already instructed the Withdrawal Bot to keep a watchful eye on the Tricrypto protocol, ensuring your deposited funds remain comfortably below 5% of the total withdrawal capacity of the pool. If outflows start tilting your deposit ratio beyond that threshold, the Withdrawal Bot leaps into action, automatically withdrawing your assets from the pool. Cobo Argus lets you stand steady while others scramble. It’s on a mission: Democratize DeFi, making it more secure, accessible and efficient for everyone.

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