AI Yield Optimizer

This component utilizes an AI-based calculation model for real-time rate monitoring and auto-rebalancing to offer highest yield, minimum risk and instant liquidity withdrawal.

Rate Monitoring:

• The system continuously monitors key metrics, including interest rates and utilization rates, across various lending protocols.

• It will initially focus on lending and borrowing yield sources, tracking interest and utilization rates first. In the future, as additional yield sources are added, it will manage other metrics as well.

• Data is updated every 30 seconds using oracle inputs, ensuring near real-time accuracy.

Off-chain Computation:

• An AI-driven optimizer utilizes a proprietary formula to determine the best allocation of funds, aiming to achieve high and stable yields while maintaining a minimum yield rate.

• AI continuously validates the calculation model to ensure yield stays above the minimum rate.

Risk Management by auto rebalancing

• The optimization algorithm takes into account not just yield, but also factors like protocol reliability and market liquidity.

• This helps to maintain a balance between maximizing returns and minimizing risk.

• Automated risk management systems ensure instant liquidity for withdrawals.

• Based on the optimizer's calculations, funds are automatically moved between different lending protocols.

• This rebalancing ensures that user funds are always deployed to the highest-yielding opportunities available.

This comprehensive approach combines rapid data updates, AI-driven optimization, automated risk management, and strategic token delegation to maximize yields while maintaining security and liquidity for users.