OptyFi takes the approach that structure of DeFi liquidity pools determines the universe of possible strategies possible.
For example, if a token is deposited into Pool A which returns LP token A, and if LP token A can be deposited into Pool B then you have a 2 step strategy.
This approach can be extended to multiple-step strategies. Adding the possibility of borrowing and swapping increases the size of the possible strategy universe significantly.
For further details please see:
OptyFi's AI Engine continuously scans DeFi pools to score the universe of possible strategies using advanced AI Algorthms. The AI Engine then recommends optimal strategies to each Vault. However, the Vault's on chain configuration enforces which strategies the Vault is permitted or not permitted to run. If the off-chain AI Engine were to recommend a non-permissible strategy, the on-chain Vault would not be able to execute it.
OptyFi has developed a general syntax for describing DeFi strategies. The following table illustrates this syntax with some basic strategies.
DAI > Compound/cDAI
DAI > Compound/cDAI > Curve/3Crv
DAI > Compound/cDAI > Curve/3Crv > Convex/crv3CRV
DAI > Swap Uniswap/DAI-USDC > Aave/aUSDC
DAI > Swap Uniswap/DAI-USDC > Aave/aUSDC > Borrow Aave/ETH > Curve/ETH-stETH