Bwise

Impermanent loss is a recurring pain point for liquidity providers in the DeFi ecosystem. Many users, while reaping the rewards of providing liquidity, are blindsided by the erosion of their assets due to price fluctuations. BWise was conceived to counteract this predicament, offering a shield against the unforeseen detriments of impermanent loss.

By utilizing advanced real-time oracles and Ethereum's vast potential, BWise provides a Chrome extension solution for Uniswap liquidity providers to monitor, alert, and potentially auto-rebalance their assets in light of impermanent loss.

The BWise protocol follows these steps:

1. User Onboarding: Users integrate the BWise Chrome extension and securely link their Ethereum wallets.
2. Pool Monitoring Setup: Users designate the Uniswap liquidity pools they are participating in for continuous surveillance.
3. Oracle-Driven Monitoring: BWise's oracle mechanism, working in conjunction with proprietary algorithms, persistently tracks the asset price ratios for utmost precision.
4. Loss Computation: Leveraging a specialized impermanent loss formula, the system deduces potential losses based on real-time and historical price data.
5. Analysis & Action: Should the computed impermanent loss breach a predefined threshold, the system's in-built deviation analytics trigger an alert to the user. Moreover, subject to user preferences, BWise can embark on an automatic rebalancing of the assets.
6. Transparency & Review: Every transaction is accessible to the user within the BWise interface, with additional provision to view the transaction on the Ethereum explorer + stored in Tableland distributed DB for a prettier view and data.

By introducing this protocol, the innate hazards of impermanent loss are drastically reduced, providing liquidity providers a more guarded and informed experience. Further, ILGuard is flexible enough to adjust to the rapidly evolving DeFi domain.

Possible Extensions for ILGuard: *Integrate with other DEX platforms beyond Uniswap for broader applicability. * Feature to allow users to set custom thresholds for alerts and rebalancing. - Integration with more advanced oracles for even finer granularity in price monitoring. - Enhance user interface with predictive analytics to forecast potential losses. - Collaborate with DeFi insurance projects to provide further asset protection.

BWise is a comprehensive solution designed to counteract impermanent loss for liquidity providers. The project integrates multiple advanced components bundled together in a single monorepo:

1. BWise Oracle System with Chainlink: A meticulously crafted oracle system leveraging the Ethereum ecosystem, built upon the Chainlink oracle infrastructure. This module is responsible for real-time tracking of asset price ratios on Uniswap, ensuring accuracy and reliability.
2. Bwis Chrome Extension: A user interface built using JavaScript and React, WAGMI, Viem, Ethers.js integrated directly into users' browsers. This component allows users to receive real-time notifications, visualize potential impermanent loss, and take user actions like auto-rebalancing.
3. Smart Contracts for Rebalancing: Our Solidity-crafted smart contracts provide the logic and security mechanisms for auto-rebalancing assets based on calculated impermanent loss. They also interface with the oracle system for accurate and timely actions.
4. Uniswap v4 Hooks Integration: We utilize Uniswap v4 hooks, which allows us to seamlessly tap into the functionalities and events within the Uniswap v4 ecosystem. This ensures that our rebalancing actions are perfectly synchronized with the Uniswap platform, ensuring accurate and timely operations.
5. TableLand Database: We employ TableLand for storing LP pair addresses and history of rebalances, enabling rapid data presentation on the user interface.
6. GraphQL Integration (Planned): In our roadmap, we anticipate incorporating GraphQL, enabling us to efficiently fetch and update data, thereby improving the UI responsiveness and real-time data representation for the users.
7. Transaction Management: For transaction handling and user account management, Bwise integrates with ethers.js.
8. User Dashboard & Overview: Our React-based interface offers users the capability to view their transaction history, impermanent loss calculations, and open their transactions in Ethereum block explorers.