Decentralized Keepers
Last updated
Last updated
Cadence is partnered with Redstone for its decentralized keepers.
More information about Redstone can be found at:
Keepers are automated systems that perform specific tasks on a blockchain network without requiring human intervention.
In particular, keepers can be used to manage decentralized finance (DeFi) protocols by monitoring market conditions and executing transactions when certain conditions are met. This can include tasks such as providing liquidity, settling trades, or even liquidating positions.
Keepers are an important part of the DeFi ecosystem because they allow for automation of complex processes that would otherwise require human intervention, thereby increasing efficiency and reducing costs. Additionally, they can help to prevent market manipulation and ensure a level playing field for all users.
Currently, in other decentralized perp protocols, Keepers are controlled by the team's EOAs. When you make a trade, the keeper actually executes your trade at a price they input. If the keeper price is deviated by 2.5% of the original chainlink price it will create a spread for the transaction.
For more details on the potential dangers of this approach, you can read this by 0xAlpha
In a perfect world, keepers allow for efficiency, accuracy of price data, and prevent frontrunning. Cadence in partnership with Redstone, has built a system to keep all these positives without the potentially dangerous centralized nature.
Our keepers are pointed to a CadenceKeeperAdapter contract built by Redstone. Anyone is able to submit price data to the setPricesWithBitsAndExecuteFunction with an attached signed approved oracle data, which will trigger a secure extraction of oracle data and calling setPricesWithBitsAndExecute on the FastPriceFeed contract. Deep verification of the signed oracle data will be done through the securelyExtractOracleValuesFromTxMsg function found , which has all been audited by ABDK and Packshield.