Auto-Sell allows you to increase your vault's collateralization ratio by automatically repaying your vault debt and de-risking your vault without closing it.
To configure your Auto-Sell, you have to determine:
This is the collateralization ratio that, when hit, will trigger the execution of your Auto-Sell. The ratio is calculated with the next oracle price.
This is the collateralization ratio that is going to be achieved by executing your Auto-Sell. For Auto-Sell, the Target Ratio is always higher than the Trigger Ratio.
Note: the Auto-Sell will be eligible for execution if it can achieve the Target Ratio +/- 2%.
Min. Sell Price
When you execute an Auto-Sell you are selling your collateral to DAI to repay the vault debt. Here you are setting the minimum collateral price that you are willing to sell your collateral at when you execute your Auto-Sell. Note that the price paid for the collateral is the current trading price on 1inch DEX, so it will very likely be different from the current and next oracle prices.
Max Gas Fee
Here you select the maximum gas fee that you are willing to spend each time your Auto-Sell executes. If the gas fee is above your max gas fee, the Auto-Sell will remain active but will not execute until the network gas fees reduce.
WARNING: please note that this is a recursive strategy, every time your trigger is hit, the Auto-Sell will execute. This means that the trigger remains in place even after the execution. If you do not wish to continue with the Auto-Sell execution, you must cancel it.
The Auto-Sell functionality is limited by the minimum vault debt. This means that you can’t set up an Auto-Sell that will take you past your dust limit. Additionally, as this is a recursive strategy, if at some point of time the execution of Auto-Sell will leave your Vault’s debt below your minimum, it will not be executed and your Vault will be at risk of liquidation.
You can watch a step-by-step tutorial to set up an Auto-Sell strategy in the video below: