First Principles Approach

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, which in turn can be combined in parallel into yield portfolios. The universe of possible strategies form a directed Strategy Graph, and executing a yield strategy can be conceptualized as traversing this Strategy Graph.

The Structure of DeFi Defines the Universe of Strategies

[Strategy graph coming soon]

AI Power Combined with Web3 Transparency

Decentralized technology offers three major benefits:
  1. 1.
  2. 2.
    User Sovereignty
  3. 3.
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.