Technology
The OptyFi technology stack was designed from the ground up to deliver an automated DeFi investing experience for users (individuals and organizations). It performs two primary functions:
- 1.Identify the Best Strategy
- 2.Execute any Strategy while Enforcing Risk Constraints
OptyFi uses a first principle approach to address these primary functions. The resulting stack consist of three layers:
- Strategy Graph
- On Chain Protocol
- AI Engine
The OptyFi Protocol approaches DeFi yield from a first principles perspective.
Starting with an abstracted view of liquidity pools, we define yield strategy steps which can be combined in sequence into yield strategies.
Under this approach, the structure of DeFi pools defines the universe of possible DeFi Strategies.
[Strategy graph coming soon]
Decentralized technology offers three major benefits:
- 1.Transparency
- 2.User Sovereignty
- 3.Innovation
But blockchains are not suitable for intensive computation.
Machine Learning based AI algorithms, on the other hand, which require sophisticated and demanding computation, have proven tremendously effective in high noise environments such as the financial markets.
OptyFi achieves an optimal balance between decentralization and computational power by separating the search and optimize functions from the execute and enforce functions.
Specifically, OptyFi's tech stack segregates the following four key functions:
- Search: Data feeds capture event and state data from hundreds of liquidity pools across multiple blockchains.
- Optimize: AI Engine provides a sophisticated machine learning architecture and pipeline to continually improve market and strategy models and generate trading signals.
- Execute: Rigorously tested on chain smart contracts hold user assets and execute strategies based on AI Engine signals.
- Enforce: Well-defined quantitative risk framework enforces on chain constraints that prevent smart contracts from running any strategies not permitted by user/vault.
Last modified 1mo ago