Strategy Graph

Universe of Strategies

The universe of possible strategies forms a Strategy Graph. The nodes of the Strategy Graph represent liquidity pools and inbound edges represent deposits into those liquidity pools.

Expanding the Graph

the structure of OptyFi's Strategy Graph is determined by liquidity pools integrated with the Protocol. Integrating a new liquidity pool to the Protocol creates a new node which potentially generates many more possible strategies.

Scanning and Optimizing

OptyFi's AI Engine constantly ingests data related to the liquidity pools in the Strategy Graph and and runs optimization algorithms to forecast the returns of the different strategies (paths) within the Graph.
After applying risk framework screens (see below) the AI Engine recommends optimal strategies to Vaults. If the recommended strategy violates the on-chain risk constraints of the Vault, then the strategy will not be executed.

Filtering for Risk

OptyFi's Risk Framework can be conceptualized as a filter on the Strategy Graph. For example, if a certain Vault disallows certain strategies, then the paths corresponding to those strategies are removed from the Strategy Graph.
For Partner Vaults, OptyFi is able to enforce customized risk constraints. The result is a custom Strategy Graph for each Vault. Since constraints can include quantitative risk measures such as Value-at-risk, the Strategy Graph structure can change as the market conditions change.