A sophisticated DeFi protocol that automatically optimizes yield farming across multiple lending protocols while providing intelligent liquidation protection for leveraged positions.
The Yield Optimizer Vault is a smart contract system that combines the best features of Compound, Aave, MakerDAO, and Frax protocols to create a unified, automated yield farming solution with built-in risk management.
- Automated Yield Optimization: Dynamically allocates funds to the highest-yielding protocols
- Liquidation Protection: Intelligent monitoring and automatic position management to prevent liquidations
- Multi-Protocol Integration: Leverages unique strengths of each DeFi protocol
- Set-and-Forget: Fully automated strategy execution with minimal user intervention
User Deposits (DAI/USDC/FRAX) → Vault → Dynamic Allocation
↓
Compound ←→ Aave ←→ Frax AMO ←→ MakerDAO PSM
The protocol continuously monitors yield rates across Compound and Aave, automatically moving funds to capture the best returns while utilizing Frax's AMO mechanisms and MakerDAO's PSM for additional opportunities.
- Users can open leveraged positions by minting DAI against collateral via MakerDAO
- Borrowed DAI is automatically deployed across Compound/Aave for yield farming
- Smart contracts monitor collateral ratios and health factors in real-time
When positions approach liquidation thresholds, the system automatically:
- Withdraws funds from lending protocols
- Partially repays MakerDAO debt to improve collateral ratios
- Uses Frax's algorithmic mechanisms for efficient rebalancing
- Executes flash loans for capital-efficient position management
- Cross-Protocol Arbitrage: Exploits rate differences between protocols
- Automated Compounding: Reinvests earned interest automatically
- Flash Loan Integration: Uses Aave flash loans for capital-efficient operations
- Risk-Adjusted Allocation: Dynamic allocation based on protocol risk scores
- Health Factor Monitoring: Continuous position health assessment
- Emergency Mechanisms: Protocol-level pause and recovery systems
- Real-time yield comparison across protocols
- Automatic rebalancing based on market conditions
- Gas-optimized strategies for maximum efficiency
┌─────────────────────────────────────────────────────────┐
│ Main Vault Contract │
├─────────────────────────────────────────────────────────┤
│ ┌─────────────┐ ┌─────────────┐ ┌─────────────┐ │
│ │ Compound │ │ Aave │ │ MakerDAO │ │
│ │ Adapter │ │ Adapter │ │ Adapter │ │
│ └─────────────┘ └─────────────┘ └─────────────┘ │
│ │ │
│ ┌─────────────┐ ┌─────────────┐ ┌─────────────┐ │
│ │ Frax │ │ Oracle │ │ Keeper │ │
│ │ Adapter │ │ Integration│ │ Network │ │
│ └─────────────┘ └─────────────┘ └─────────────┘ │
└─────────────────────────────────────────────────────────┘
- Vault Core: Main contract implementing ERC-4626 standard
- Protocol Adapters: Modular interfaces for each external protocol
- Oracle System: Real-time price and yield rate feeds
- Keeper Network: Automated monitoring and execution layer
- Risk Engine: Advanced risk assessment and management
| Protocol | Purpose | Integration |
|---|---|---|
| Compound | Lending/Borrowing | cToken deposits, yield farming |
| Aave | Lending/Flash Loans | aToken deposits, flash loan execution |
| MakerDAO | Leverage & Stability | CDP management, PSM swaps |
| Frax | Algorithmic Stablecoin | AMO yield capture, FRAX handling |
- Multi-layered Access Control: Role-based permissions with time delays
- Emergency Pause Mechanisms: Protocol-level and function-level pauses
- Oracle Validation: Multiple price feed validation with fallbacks
- Reentrancy Protection: Comprehensive guards against attack vectors
- Formal Verification: Mathematical proofs for critical functions
- Automated optimization across multiple protocols
- No need to manually monitor and switch between platforms
- Compound interest through automated reinvestment
- Gas cost optimization through batched operations
- Intelligent liquidation protection
- Automated position management
- Capital-efficient leverage through flash loans
- Real-time risk monitoring and alerts
- Deposit: Add stablecoins (DAI, USDC, FRAX) to the vault
- Choose Strategy: Select yield optimization only or leveraged positions
- Monitor: Track performance through the dashboard
- Withdraw: Remove funds anytime (subject to protocol availability)
git clone [repository-url]
npm install
forge build
forge test- Smart contract vulnerabilities in integrated protocols
- Oracle manipulation or failure
- Liquidity constraints during market stress
- Impermanent loss in leveraged positions
- Rapid market movements affecting liquidation protection
- Interest rate volatility across protocols
- Comprehensive testing and formal verification
- Gradual rollout with TVL limits
- Emergency pause mechanisms
- Insurance fund for extreme scenarios
- Phase 1: Core vault and basic protocol integrations
- Phase 2: Advanced features (flash loans, arbitrage)
- Phase 3: Governance token and DAO structure
- Phase 4: Cross-chain expansion
We welcome contributions! Please read our Contributing Guidelines and Code of Conduct.
This project is licensed under the MIT License - see the LICENSE file for details.
This protocol involves complex DeFi interactions and carries inherent risks. Users should understand the risks involved and never invest more than they can afford to lose. This is experimental software and has not been audited yet.