Yieldex AI

Introducing Yieldex

Yieldex is an AI-powered protocol that automates stablecoin yield optimization by leveraging advanced machine learning algorithms and a proprietary risk-scoring framework. Yieldex identifies the safest and most profitable opportunities in real-time, relocating funds automatically to maximize returns while minimizing risk.

The Problem We Solve The DeFi ecosystem is currently fragmented across multiple blockchains and protocols, each with its own unique design, risks, and yield opportunities. This fragmentation creates significant challenges for users:

• Fragmentation Across Chains and Protocols: Users must manually research and compare opportunities across lending protocols, liquidity pools, leverage trading platforms, and more.

• Unreliable Data: Front-end projections of capital returns are often inaccurate or incomplete, requiring extensive due diligence.

• Time-Consuming Portfolio Management: Rebalancing portfolios daily to capture the best yields is impractical for most users, especially those with limited technical expertise.

• Risk Management Complexity: Identifying secure and profitable opportunities requires a deep understanding of protocol solvency, utilization rates, and reward structures.

For decentralized autonomous organizations (DAOs) managing idle treasury capital, these challenges are magnified as they seek to optimize returns on large-scale investments.

How Yieldex Works

1. Data Aggregation : Yieldex scans both on-chain and off-chain data to gather real-time insights into lending protocols, liquidity pools, leveraged trading platforms, and other stablecoin yield-generating opportunities.

2. AI-Driven Analysis : Our AI agents analyze key parameters such as current and historical APYs, additional rewards, utilization rates, platform solvency, and risk metrics.

3. Automated Fund Relocation : Based on the analysis, the allocation module triggers the event that relocates the funds sitting in users’ smart wallets to the most profitable and secure pools, ensuring maximum returns with minimal user intervention.

4. Cross-Chain Compatibility : As the first cross-chain yield optimization solution, Yieldex operates seamlessly across multiple blockchains, unlocking opportunities that were previously inaccessible to users.

** Market Opportunity ** The stablecoin market is valued at over $160 billion, with tens of billions actively seeking yield in DeFi. However, the current fragmentation and inefficiencies in the ecosystem leave a massive opportunity untapped. Yieldex is poised to capture this multi-billion-dollar market by providing a seamless, automated solution for yield optimization across chains and protocols.

We built a lean yield optimizer using:

• Python with async data collection (aiohttp/websockets)
• ERC-4337 Smart Wallets for secure transaction bundling
• Arbitrum L2 for low-cost AAVE operations and Oracle storage
• Web3.py for chain interactions (AAVE V3 contracts)
• Supabase real-time database for APY tracking

Key Implementation Details:

1. Hybrid Architecture

   • Real-time yield data from DeFiLlama API → Supabase
   • ERC-4337 account abstraction enables batch transactions across AAVE pools

2. Notable Hacks

   • APY normalization across protocols using sigmoid scaling
   • Transaction simulation with local Arbitrum node fork
   • Telegram alert system with auto-message prioritization

Partner Tech Benefits:

• Arbitrum's 0.3s block time enables rapid position changes
• ERC-4337 paymasters reduce user onboarding friction
• Supabase RLS secures sensitive wallet metadata

Core innovation: Automated capital allocation between AAVE pools using ERC-4337 wallets with L2 cost optimization.