Yieldera

🧠 Yieldera The 1st AI-Powered Automated Liquidity Management Protocol on the Hedera Network

🧾 Project Overview

Yieldera is the first AI-powered automated liquidity management system on Hedera, designed to optimize DeFi yield strategies across multiple protocols such as SaucerSwap (Uniswap V3-style AMM) and Bonzo (lending/borrowing protocol). It leverages a novel integration of: Advanced AI agents (Gemini-based). Rust-powered backends for intelligent logic and monitoring. Model Context Protocol (MCP) for safe, modular AI tools. Smart contracts for fully automated, non-custodial liquidity vaults. The result: a plug-and-play yield optimizer that can analyze market conditions, rebalance positions, minimize impermanent loss, and maximize returns, all without user micromanagement.

💡 Problem & Why It Matters DeFi liquidity provision remains inefficient and intimidating: Up to 40% impermanent loss in volatile markets Users waste 15+ hours/week manually managing LP positions Complexity locks out non-technical users Protocol fragmentation = yield fragmentation Yieldera solves this with: ✅ AI-driven position analysis ✅ Continuous rebalancing ✅ Real-time opportunity tracking ✅ Multi-protocol aggregation on Hedera

🧪 Features

🧪 Features Yieldera offers a comprehensive feature set designed to make DeFi liquidity management seamless, intelligent, and secure. At its core, the protocol leverages Gemini-powered AI automation via the Model Context Protocol (MCP) to optimize yield strategies in real time. It supports cross-protocol integration with both SaucerSwap liquidity pools and Bonzo lending markets, allowing for dynamic asset allocation. The rebalancing logic continuously monitors market movements and adjusts LP positions accordingly to maximize returns and minimize impermanent loss. Users can interact with the system through an intuitive vault management interface, enabling deposits, withdrawals, real-time token stats, and automatic fee compounding. Yieldera is built with a focus on security and UX, featuring fully non-custodial, audited smart contracts and seamless Web3 wallet support. On the development side, the project is equipped with robust DevOps infrastructure, supporting both testnet and mainnet environments, environment-based configurations, and a CI/CD-ready architecture for scalable deployment.

🧑‍💻 Hackathon Deliverables (MVP)

MCP AI Tooling: ✅ Completed, Gemini-integrated AI tools built using the Model Context Protocol in Rust. Vault Smart Contract: ✅ Completed, Fully functional smart contracts with support for SaucerSwap V3-style LP positions. Backend API: ✅ Completed, Built with Actix in Rust, featuring Swagger documentation and complete vault management logic. AI Chat Assistant: ✅ Completed, Integrated Gemini-powered assistant capable of executing DeFi operations via MCP. Frontend UI: ✅ Completed, Cyberpunk-themed React/TypeScript interface with multi-wallet support. Vault Deployment: 🚀 Deployed, Smart contracts live on both Hedera Testnet and Mainnet. Documentation: ✅ Completed, In-depth README covering setup, architecture, configuration, and deployment.

🌐 Why Hedera? Low Gas (0.001¢) – Enables micro-rebalances with AI triggers High Throughput – Real-time on-chain rebalancing is feasible EVM Compatibility – SaucerSwap + Bonzo access Growing DeFi Ecosystem – Yieldera increases TVL and active participation Enterprise-grade AI-readiness – Perfect fit for MCP

🏗️ System Architecture 🔧 1. Backend (Rust - Actix) Automated Rebalancer: Implements real-time LP vault rebalancing logic AI Tool Integration: Via a Gemini-powered AI agent using the mcp protocol REST API + Swagger: Exposes all vault management functions and monitoring endpoints Vault Registry: Tracks deployed vaults and live on-chain positions Risk/Reward Engine: Monitors protocol and token volatility to trigger rebalances 🧠 2. AI Agent (Gemini + MCP) Chat-based Yield Assistant: Interacts with users via natural language Blockchain-Aware Tools: Balance queries, lending ops, liquidity forecasting Predictive Analytics: Forecasts yield changes and impermanent loss exposure Continuous Learning: Improves rebalancing strategies over time 💻 3. Frontend (React/TypeScript) Cyberpunk UI with wallet connection (HashPack, MetaMask, Kabila, Blade) Vault Dashboard with real-time stats and deposit/withdraw options AI Chatbot Panel for managing positions and querying market insights Token Tracker displaying live balances and rewards 📜 4. Smart Contracts (Solidity) YielderaVault contract: Non-custodial LP vaults Support for Uniswap V3-like concentrated liquidity Automated minting, burning, rebalancing HBAR + HTS Support: Native Hedera tokens like HBAR, SAUCE, USDC, WHBAR 🧠 5. MCP Server (Rust) Custom-built Model Context Protocol (MCP) server Provides AI agents with secure access to: Token balances Bonzo supply operations Token metadata and more

🔮 Roadmap The Yieldera development roadmap is structured to deliver value in rapid, focused iterations. In Q3 2025, we’re launching the MVP with SaucerSwap integration, establishing the foundation for AI-driven liquidity management. By Q4 2025, we aim to introduce a real-time backtesting engine alongside advanced risk assessment tools to improve strategy evaluation and risk mitigation. In Q1 2026, the protocol will integrate with Bonzo, enabling intelligent auto-supply strategies for lending markets. Moving into Q2 2026, we'll release an AI performance dashboard and support custom user strategies, giving users deeper control over risk and yield profiles. Finally, in Q3 2026, we plan a mainnet launch featuring premium capabilities such as automated hedging and AI-powered yield forecasting, solidifying Yieldera as the go-to intelligent liquidity layer on Hedera.

🌐 Token Utility & New Financial Primitives on Hedera To support sustainable growth and unlock advanced DeFi capabilities, Yieldera introduces a dual-token model built with the Hedera Token Service (HTS): $YLD and $YLDX. This system is designed to enable new financial primitives on Hedera mechanisms that enhance capital efficiency, protocol governance, long-term alignment, and liquidity incentives across DeFi. 💠 Dual Token Mechanism $YLD is the core utility and governance token of the Yieldera protocol. It is earned by users who interact with Yieldera vaults, provide liquidity, or stake in the protocol. $YLDX is a yield-locked derivative token minted when users stake or lock $YLD. Holding $YLDX represents long-term protocol alignment, grants enhanced governance rights, and unlocks protocol-based incentives. In addition to governance, $YLD stakers receive a share of protocol earnings including fees generated from yield farming, rebalancing strategies, and AI-optimized liquidity operations. This creates a fee-sharing mechanism that rewards long-term stakeholders and directly ties protocol success to token holder value. ⚙️ Built on HTS Both $YLD and $YLDX are native HTS tokens, leveraging the technical advantages of the Hedera network: ⚡ Ultra-low transaction fees for efficient staking, trading, and fee distribution ⚡ Instant finality and high throughput for real-time financial operations ⚡ Seamless compatibility with ecosystem tools like SaucerSwap, HashPack, Blade, and Bonzo 📈 Unlocking Ecosystem Growth This token system unlocks new economic dynamics and utility loops within Hedera's DeFi landscape: 🔁 New Trading Markets: A YLD–YLDX liquidity pool on SaucerSwap can drive additional volume, fee generation, and user participation. 📊 Increased TVL: Staking $YLD for $YLDX removes circulating supply, locks capital, and strengthens protocol liquidity. 💸 Fee Redistribution: Stakers benefit directly from protocol earnings, aligning their incentives with the system’s long-term health. 🔄 Collateral Utility: $YLDX can be used as collateral on Bonzo, unlocking recursive DeFi strategies and broader lending integration. ♻️ Token Utility Loop: Users earn $YLD, stake it for $YLDX, participate in governance, and receive passive income all on-chain. 🌱 Hedera Ecosystem Benefits By introducing this dual-token architecture and yield-sharing model, Yieldera is establishing new financial primitives native to Hedera. These tools go beyond standard DeFi tokenomics fostering cross-protocol composability, capital retention, and protocol-aligned incentives. The result is more active liquidity, deeper DeFi integrations, and stronger user engagement across the entire ecosystem. Yieldera’s model not only showcases the flexibility of HTS but also positions Hedera as a leading environment for next-generation, AI-powered financial infrastructure.

📊 Projected Impact By 2026, Yieldera aims to make a significant impact on the Hedera DeFi ecosystem. We project reaching over 15,000 active users, with $50 million in assets under management (AUM) flowing through our intelligent vaults. Our goal is to contribute to at least 25% of all LP activity on Hedera, reflecting Yieldera’s role as a core infrastructure layer for liquidity optimization. Thanks to AI-driven strategy execution, we anticipate delivering an average 35% yield uplift compared to manual farming, making DeFi more profitable and accessible for all users. These outcomes are expected to generate around $1 million in annual revenue, primarily through performance-based and management fees.

🤝 Collaboration & Open Source Yieldera is open to: Protocol integrations (e.g., HeliSwap) Governance partnerships with DAOs or Treasury managers Enterprise tools for DeFi fund management Hedera ecosystem collaboration (educational, dev tooling, or devrel)

🧱 Contributing to the Hedera Ecosystem 📦 Building the First Rust-Based MCP Server for Hedera As part of the Yieldera project, we've taken the initiative to expand the AI tooling infrastructure available to Hedera developers by implementing a custom Model Context Protocol (MCP) server in Rust. This MCP server acts as a secure and extensible gateway between AI agents (like Gemini) and the Hedera blockchain, enabling safe read/write access to on-chain data and protocol interactions through modular tools. ✅ Our Key Contributions: 🔧 Rust MCP Implementation: First known MCP implementation designed for Hedera DeFi tooling using Rust. 🧠 AI-Tooling Bridge: Integrated with Google Gemini to allow natural language interaction with on-chain actions like: HBAR/HTS balance checks Supplying tokens to Bonzo Yield calculation and optimization recommendations Vault performance breakdowns 🔒 Secure AI Execution: AI agents cannot directly interact with the chain; all blockchain activity is executed via vetted tools exposed through the MCP protocol. 🔌 Composable Tooling: Tools are built as independent, reusable modules with a unified JSON schema and dynamic dispatching. 🧰 Tools We've Built (So Far): balance_checker: Get HBAR/HTS token balances from account IDs bonzo_supplier: Supply tokens from vaults to Bonzo lending protocol token_info: Retrieve metadata and price info for Hedera-native tokens 🌱 Why This Matters: We're laying the foundation for a Hedera-native AI agent infrastructure, enabling developers to easily expose blockchain operations to large language models — securely, modularly, and transparently. By open-sourcing this infrastructure, we aim to kickstart an ecosystem of AI-enhanced DeFi tools on Hedera, allowing other builders to: Develop custom MCP tools for their own dApps Extend the Yieldera MCP with additional protocols (e.g., HeliSwap, SaucerSwap v2) Build educational bots, assistants, or strategy optimizers that interact directly with Hedera via AI

🤝 Ecosystem Impact Rust Tooling: Expanded the Hedera developer ecosystem by introducing robust, production-ready Rust tooling for DeFi and AI integration. AI Innovation: Delivered the first known integration of Google Gemini with Hedera via the Model Context Protocol (MCP), enabling AI agents to interact with blockchain data securely. Composable Infrastructure: Built an open, modular MCP server architecture in Rust, allowing developers to plug in new tools and protocols with ease. Education: Provided a real-world example of safe AI-agent interactions with blockchain systems, helping onboard new builders to both Hedera and MCP. Interoperability: Designed the system to be AI-model agnostic, laying the groundwork for future integration with other LLMs and agent systems.

🔧 1. Backend (Rust - Actix) Automated Rebalancer: Implements real-time LP vault rebalancing logic AI Tool Integration: Via a Gemini-powered AI agent using the mcp protocol REST API + Swagger: Exposes all vault management functions and monitoring endpoints Vault Registry: Tracks deployed vaults and live on-chain positions Risk/Reward Engine: Monitors protocol and token volatility to trigger rebalances

🧠 2. AI Agent (Gemini + MCP) Chat-based Yield Assistant: Interacts with users via natural language Blockchain-Aware Tools: Balance queries, lending ops, liquidity forecasting Predictive Analytics: Forecasts yield changes and impermanent loss exposure Continuous Learning: Improves rebalancing strategies over time

💻 3. Frontend (React/TypeScript) Cyberpunk UI with wallet connection (HashPack, MetaMask, Kabila, Blade) Vault Dashboard with real-time stats and deposit/withdraw options AI Chatbot Panel for managing positions and querying market insights Token Tracker displaying live balances and rewards

📜 4. Smart Contracts (Solidity) YielderaVault contract: Non-custodial LP vaults Support for Uniswap V3-like concentrated liquidity Automated minting, burning, rebalancing HBAR + HTS Support: Native Hedera tokens like HBAR, SAUCE, USDC, WHBAR 🧠 5. MCP Server (Rust) Custom-built Model Context Protocol (MCP) server Provides AI agents with secure access to: Token balances Bonzo supply operations Token metadata and more