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Strategy Builder

Create, test, and deploy automated DeFi investment strategies using Difract's powerful strategy building tools.

Overview

The Strategy Builder allows you to create sophisticated DeFi investment strategies that can automatically execute based on market conditions, yield opportunities, and risk parameters.

Key Features

Visual strategy builder
Strategy backtesting
Automated execution
Risk management rules
Multi-protocol integration

Strategy Components

Build strategies using a combination of triggers, conditions, and actions.

Triggers

Time-based events
Price movements
APY changes
TVL thresholds
Gas price conditions

Conditions

Risk thresholds
Portfolio balance
Market volatility
Protocol health
Chain conditions

Actions

Asset allocation
Position entry/exit
Rebalancing
Cross-chain bridges
Yield farming

Creating a Strategy

Define your investment strategy using Difract's strategy builder API.

Basic Strategy Example

const strategy = await difract.strategy.create({
    name: "High Yield USDC Strategy",
    description: "Automatically allocate USDC to highest yielding opportunities",
    
    triggers: [{
        type: "apy_change",
        conditions: {
            asset: "USDC",
            threshold: 2,  // % change
            timeframe: "1h"
        }
    }],
    
    rules: [{
        type: "allocation",
        settings: {
            maxAllocation: 30,  // % per protocol
            minYield: 5,        // % APY
            maxRisk: 7          // risk score
        }
    }],
    
    actions: [{
        type: "rebalance",
        settings: {
            mode: "optimal_yield",
            gasThreshold: 50,  // GWEI
            slippageTolerance: 1  // %
        }
    }]
});

Advanced Strategies

Create more sophisticated strategies with multiple conditions and complex execution logic.

Advanced Strategy Example

const advancedStrategy = await difract.strategy.create({
    name: "Multi-Asset Yield Optimizer",
    assets: ["USDC", "ETH", "WBTC"],
    
    triggers: [
        {
            type: "time",
            schedule: "0 0 * * *"  // Daily at midnight
        },
        {
            type: "market_volatility",
            conditions: {
                threshold: 20,  // %
                window: "24h"
            }
        }
    ],
    
    rules: [
        {
            type: "risk_management",
            settings: {
                maxDrawdown: 10,     // %
                stopLoss: 5,         // %
                takeProfitAt: 20     // %
            }
        },
        {
            type: "diversification",
            settings: {
                minProtocols: 3,
                maxChainExposure: 40,  // %
                correlationLimit: 0.7
            }
        }
    ],
    
    actions: [
        {
            type: "position",
            conditions: {
                entryTrigger: "optimal_yield",
                exitTrigger: "risk_threshold"
            }
        },
        {
            type: "cross_chain",
            settings: {
                bridgeOptimization: true,
                maxBridgeFee: 0.1  // %
            }
        }
    ],
    
    execution: {
        mode: "active",
        gasOptimization: true,
        priorityLevel: "medium",
        notifications: true
    }
});

Strategy Backtesting

Test your strategy against historical data before deploying it live.

Backtesting Example

const backtest = await difract.strategy.backtest({
    strategyId: "strategy_123",
    timeframe: {
        start: "2023-01-01",
        end: "2023-12-31"
    },
    parameters: {
        initialCapital: "100000",  // USDC
        rebalancingPeriod: "7d",
        slippageModel: "historical",
        gasModel: "average"
    },
    metrics: [
        "returns",
        "volatility",
        "sharpe_ratio",
        "max_drawdown",
        "gas_costs"
    ]
});

Strategy Deployment

Deploy your strategy to automatically execute based on your defined conditions.

Deployment Example

const deployment = await difract.strategy.deploy({
    strategyId: "strategy_123",
    mode: "live",
    capital: {
        amount: "50000",
        asset: "USDC"
    },
    execution: {
        priority: "high",
        gasOptimization: true,
        notifications: {
            email: "user@example.com",
            telegram: "@username"
        }
    },
    monitoring: {
        frequency: "5m",
        healthChecks: true,
        performanceTracking: true
    },
    safetySettings: {
        emergencyStop: true,
        maxLoss: 10,  // %
        cooldownPeriod: "1h"
    }
});

Strategy Monitoring

Monitor your strategy's performance and receive alerts about important events.

Monitoring Example

const monitor = await difract.strategy.monitor({
    strategyId: "strategy_123",
    metrics: {
        performance: ["returns", "drawdown", "yield"],
        risk: ["exposure", "volatility"],
        operations: ["gas_used", "slippage", "errors"]
    },
    alerts: {
        performance: {
            drawdownThreshold: 5,  // %
            returnDeviation: 10    // %
        },
        risk: {
            exposureLimit: 40,     // %
            volatilityThreshold: 30 // %
        },
        operations: {
            highGas: 100,          // GWEI
            maxSlippage: 2         // %
        }
    },
    reporting: {
        frequency: "daily",
        format: "dashboard"
    }
});

Next Steps

Risk Assessment

Learn how to assess and manage risks in your strategies

Cross-Chain Operations

Implement cross-chain strategies for better opportunities

Monitoring

Set up comprehensive monitoring for your strategies