Hey there, crypto enthusiasts! If you’ve been diving into the world of decentralized finance (DeFi), you’ve probably heard about liquidity provision and the endless debates about automation versus manual management. Well, Gravity Finance just dropped a bombshell with their latest X thread, showcasing a week-long test comparing their Silo Automation to manual liquidity provision on the Shadow Exchange. Let’s break it down and see what this means for your crypto journey!

The Experiment: Setting the Stage

Gravity Finance ran a test from July 3rd to July 7th, pitting their automated Silos against manual liquidity provision using the stS/USDC pair on Shadow Exchange. They started with four positions, each seeded with $500 USDC:

• 2 Gravity Silos (automated)
• 2 Manual LPs (managed via Shadow UI)

They tested two strategies: a 2% active range (aggressive) and a 4% active range (moderate). The market wasn’t kind during this period—the S token dropped about 6-7%, from $0.3301 to $0.3090. For fairness, the manual LPs were checked four times a day (morning, lunchtime, evening, and night) to mimic what most users can realistically manage.

Manual LP: A Time-Consuming Struggle

Managing liquidity manually sounds simple, right? Think again! The Gravity team, experienced DeFi users, found it took about 10 minutes each time they needed to claim rewards, compound them, or rebalance positions. This involved multiple steps like approvals, swaps, and re-adding liquidity. Even with regular checks, the manual LPs couldn’t keep up:

• 2% range LP: Ended at $485.26 (~3% loss)
• 4% range LP: Ended at $485.79 (~2.91% loss)

Despite the market’s decline, the extra effort didn’t pay off, and the constant monitoring felt like a full-time job!

Gravity Silos: Automation Saves the Day

Now, let’s talk about the star of the show—Gravity Silos. With this automated system, you deposit one token, and it handles everything: approvals, swaps, range management, compounding, and rebalancing—all with one click and zero daily intervention. The results? Even in a declining market, the Silos came out on top:

• 2% range Silo: Ended at $514.10 (+1.62% profit)
• 4% range Silo: Ended at $508.55 (+1.27% profit)

That’s right—automation turned a potential loss into a profit, even when the market was down!

Key Takeaways: Why Automation Wins

The test revealed some eye-opening insights:

• Manual LPs require constant attention and still lost value due to market volatility.
• Silos absorbed the ups and downs, delivering consistent gains.
• Gas costs were higher for Silos (~$6 vs ~$0.35 for manual), but the time saved and profit made it worthwhile.
• Silos condensed 30+ actions into a single transaction, making it a set-and-forget solution.

Imagine scaling this up! With a $5,000 starting balance, the Silos could yield a 2.7% return in one week, translating to an impressive 285% APY. Check out the charts below to see the balance growth, gas costs, and S token value trends:

What’s Next for Gravity Finance?

The team plans to keep monitoring these positions over the next few weeks, exploring how they perform in sideways and up-trending markets. Since volatile assets require more rebalancing (and thus more gas for Silos), it’ll be interesting to see how this plays out. For manual LPs, going out of range stops rewards, while Silos keep earning despite the cost.

Join the Gravity Finance Community

If this piqued your interest, why not dive deeper? Gravity Finance invites you to join their welcoming DeFi community on Discord. Follow them on X for more updates—they’re always building and engaging with their audience!

Final Thoughts

This test highlights a game-changer for DeFi enthusiasts. Manual liquidity provision might give you control, but it’s a time sink with no guaranteed wins. Gravity Finance’s Silo Automation, on the other hand, offers a hands-off approach with better returns—perfect for busy crypto investors. Whether you’re a seasoned trader or just starting, this could be the tool to level up your strategy. What do you think—ready to give Silos a try?