As one of the asset management solutions offered by Cobo^[1] focusing on DeFi-as-a-service, Cobo Argus is built atop Safe{Wallet} and is designed to simplify interactions with DeFi protocols and improve workflow efficiency, while ensuring high-quality risk management.

Overview

Cobo Argus is built on top of Safe (previously Gnosis Safe)^[2], a multi-signature smart contract wallet, and operates as a DeFi investment and risk management tool at the application layer.

The functionality layer, Cobo Safe^[3], is a smart contract embedded with Safe's capabilities and features role-based access controls and custom module logics. This architecture ensures a seamless integration with all open-source DeFi protocols, providing users with increased flexibility and accessibility in managing their digital assets.

Cobo Argus's functionalities encompass but are not restricted to multisig wallet fund management, pre-authorization, investment strategies, DeFi bots, risk monitoring, and alerts.

In late June 2023, Cobo Argus released its V2 version,  allowing users to access features such as DeFi strategies authorization, team role delegation and risk management and scored $100M in total value locked (TVL) one week after going live^[4].

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Product Features

Single-Sig Authorization

Cobo Argus allows users to complete a one-time delegation of pre-configured DeFi permissions to team members. Delegated team members can complete authorized DeFi operations using a single-signature. Cobo Argus is embedded with built-in risk control policies at the parameter level by default.

Alternatively, Safe{Wallet} users can configure highly customizable DeFi permissions at the function and address levels, which are designed to accommodate more advanced workflow requirements and governance needs. This feature supports DeFi protocols that range across spot trading such as ParaSwap, 0x^[5], Uniswap, Curve, derivatives trading such as GMX, lending such as Aave and Compound, and liquidity mining including Convex Finance, Pendle Finance and Equilibria^[6].

Take the Lido strategy on Ethereum as an example: Cobo Argus breaks it into six steps—authorization, wallet connection, deposit, reward claim, transfer, and withdrawal. These steps are further adapted into three permissions: deposit, withdrawal, and claiming. With this setup, different roles, such as finance for deposits and traders for claiming and selling, can be assigned with multisig control over withdrawals.

Customized DeFi Permission

Customized bots^[7] allow owners to configure their own triggers and set up any tasks to be executed on-chain automatically, such as data monitoring, risk alerts and advanced DeFi operations (e.g., parse transactions, transfer and swap tokens, call smart contracts) via Cobo Argus or platforms such as Blocksec^[8], Phalcon Block^[9], Redefine^[10] and Chainbot^[11].

Specific protocol monitoring and on-chain execution is supported through Access Control List (ACL)^[12]. The Authorizer, acting as an Access Control List (ACL) smart contract, enables versatile configuration and adaptive permission access control through the composition of ACL code. A "Role" consists of a compilation of permissions from multiple Authorizers. For example, a seasoned trader may be granted a composite set of permissions encompassing GMX liquidity provision, liquidity withdrawal, fee claiming, and Compound deposit/withdrawal. Conversely, a standard trader may be allocated a permission set restricted to Compound deposit/withdrawal, tailored exclusively for Members/Interns.

Automation Bots

(i) Claiming Bot for DeFi Automation

Cobo Argus introduces a suite of DeFi bots, encompassing claiming bots^[13], withdrawal bots^[14], and leverage bots, each tailored to fulfill specific DeFi functions. These bots enable users to optimize mining revenue strategies and manage risks without the necessity for manual intervention or continuous monitoring.

For automated mining operations, users can establish trigger conditions for mining bots, such as time intervals, gas fee thresholds, and reward amount thresholds. Upon meeting these predefined trigger conditions, the bot autonomously executes tasks, including reward collection, token claiming, or token exchanges on behalf of the user.

(ii) Withdrawal Bot for Proactive Risk Management

Cobo Argus' withdrawal bot functions as a continuous monitor of stablecoin balances on decentralized exchanges (DEX), promptly alerting users and initiating automatic withdrawals when the balance approaches their designated investment amount. This proactive approach aims to mitigate potential risks in a dynamic and ever-changing DeFi environment.

During periods of market volatility, Cobo Argus' withdrawal bot tracks critical indicators like Loan-to-Value (LTV) ratios in liquidity pools. Timely alerts are issued, and assets are withdrawn from high-risk pools when specific conditions are met. In this capacity, the withdrawal bot acts as a diligent guardian, safeguarding investments in the complex and fluctuating DeFi landscape.

(iii) Leverage Bot

The Leverage Bot^[15] facilitates users in monitoring their collateral ratio, especially when utilizing Liquid Staking Token (LST) as collateral. In the event of a price decrease in the token asset, leading to the collateral ratio dropping below the safety threshold, the bot aids by repaying tokens. This action restores the collateral ratio to a secure level, preventing the liquidation of user assets.

Using the Lybra strategy as an example: When users mint eUSD on Lybra, they provide collateral in either ETH or LST. The collateral ratio reflects the ratio of the value of the asset used as collateral to the loan amount. Given that eUSD is an over-collateralized asset, users must maintain a collateral ratio of 150% to avoid potential liquidation.

If the current collateral ratio falls below the user's preset threshold of 190%, the bot initiates the repayment of eUSD to achieve the user-configured ratio of 250%, averting the risk of liquidation. This allows users to mint eUSD while defining the range of collateral ratios within which the bot conducts repayments autonomously.

(iv) Customized bot

Users can personalize these bots to keep an eye on on-chain data, focusing on contract activities. When specific values are met, these bots swing into action, carrying out tasks like swaps, deposits, or withdrawals based on user preferences.

Cobo Argus has released a customized strategy targeting EigenLayer pools^[16]. Following the listing of stETH, rETH, and cbETH with varying fill-up times, a specific bot is created to watch over the swETH^[17] pool's parameters, such as TVL, to make pre-authorized early deposits.

Webhook

A webhook is an HTTP callback mechanism^[18] triggered under specific conditions, utilizing an HTTP POST request to deliver concise event notifications^[19]. Essentially, when a predefined event occurs, a web application integrated with a webhook sends a message to a specified URL. This facilitates real-time data transmission and enables responses to specific events within an application or system.

Cobo Argus has recently introduced support for webhook configuration. Users can configure webhooks within the Cobo Argus bot, leveraging features provided by third-party services such as Phalcon Block and Chainbot. These services offer a range of bots, including the Event Bot, DEX Bot, and Transaction Bot, to monitor real-time blockchain data. When predefined risk conditions are met, the webhook can automatically activate the Cobo Argus bot.

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Partnerships

Cobo Argus has established partnerships with key blockchains, blue-chip protocols and web3 platforms to enable non-custodial asset management, including Curve, Lido, GMX, BendDAO^[27], Chainlink etc.

Rabby Wallet

In Sep 2023^[23], Cobo Argus integrates with Rabby^[26] where Argus users can import their Safe Modules and connect with various dApps. Safe owners can utilize Rabby Wallet to review transaction history, manage addresses, view balances, and access connected dApps.

For delegated team members, Rabby Wallet facilitates single-sig operations, provides access to transaction history, allows the viewing of connected dApps.

ParaSwap

In Nov 2023^[24], Cobo Argus announced a partnership with ParaSwap to bring PSP token support and in-app direct access to the ParaSwap aggregator.

Lybra Finance

In Dec 2023^[22], Lybra integrated with Cobo Argus. This partnership includes DeFi bots to facilitate eUSD^[20] and peUSD^[21] asset generation and management for major investment funds.

Pendle Finance

In Jan 2024^[25], Cobo Argus formed a partnership with Pendle where automated yield claims based on condition triggers such as gas prices, time intervals, reward amounts, and more are offered.

Blocksec

To tackle uncertainty and risks from protocol pauses and pool freezes, Cobo Argus has developed an automated withdrawal strategy with BlockSec's Phalcon Block^[9] to enable preemptive fund withdrawal^[28]. With prior setup on Phalcon Block, the intelligence can be captured as early as the transactions are still in the mempool stage and trigger pre-set response mechanisms to withdraw funds promptly.