Yield Optimizer

Autonomous USDC yield optimization across DeFi lending protocols and chains.

What This Does

Scans real-time yields from DeFi Llama, ranks opportunities by risk-adjusted return, recommends allocations, and can execute deposits/withdrawals via the wallet skill.

Data source: DeFi Llama Yields API (free, no key, real-time).

Supported Protocols & Chains

Protocol	Type	Chains
Aave V3	Lending	ETH, ARB, Base, OP, Polygon, Avax
Compound V3	Lending	ETH, ARB, Base, OP, Polygon
Morpho (V1 + Blue)	Lending	ETH, Base
Pendle	Yield tokenization	ETH, ARB
Spark / Sky	Lending	ETH
Fluid	Lending	ETH
Euler	Lending	ETH, ARB, Base

Stablecoins tracked: USDC, USDT, DAI, USDS, sDAI, sUSDe, GHO

Core Workflows

1. Scan & Report

When user asks "what are the best yields?" or "where should I put my USDC?":

Run python3 skills/yield-optimizer/scripts/scan_pools.py
Present top opportunities grouped by risk tier
Highlight the best rate per chain and the overall best

Risk tiers:

Tier 1 (Safe): Aave V3, Compound V3, Spark — established, audited, >$100M TVL
Tier 2 (Moderate): Morpho, Euler, Fluid — newer but audited, >$10M TVL
Tier 3 (Aggressive): Pendle, smaller pools — higher yields, more complexity

2. Recommend Allocation

When user has a specific amount to deploy:

Scan current rates
Filter by user's risk preference (default: Tier 1-2)
Suggest allocation:
- Conservative: 100% best Tier 1 pool
- Balanced: 70% Tier 1 / 30% Tier 2
- Aggressive: 50% Tier 1 / 30% Tier 2 / 20% Tier 3
Show expected annual yield in dollar terms

3. Execute Deposit

When user confirms a recommendation:

Check wallet balances via wallet skill (wallet_balance on target chain)
If USDC is on wrong chain, suggest bridging (across-bridge skill)
For Aave V3 deposits, use the contract addresses from references/contracts.json
Execute: approve USDC → supply to Aave pool
Verify position via aToken balance read

Prerequisites — Wallet Policy: Before any on-chain execution, load the wallet-policy skill and propose the standard wildcard policy.

4. Monitor & Rebalance

For scheduled autonomous operation:

Scan yields every hour
Compare current position APY vs best available
If delta > 0.5% AND gas cost < 0.1% of position — recommend rebalance
Log all decisions (hold/rebalance) with reasoning

Schedule via: schedule_task(command="python3 skills/yield-optimizer/scripts/scan_pools.py --json", schedule="every 1 hour")

Decision Logic

scan pools → filter (TVL > $100K, supported protocols) → rank by APY

IF no current position:
  → recommend deposit to best risk-adjusted pool

IF current position exists:
  apy_delta = best_available - current_apy
  IF apy_delta < 0.5%: HOLD (not worth gas)
  IF gas_cost > 0.1% of position: HOLD (too expensive)  
  ELSE: REBALANCE (withdraw → bridge if needed → deposit)

Key Gotchas

APY ≠ APR. DeFi Llama returns APY (compounded). Don't double-compound when projecting.
Reward APY is temporary. apyReward (token incentives) can vanish overnight. Weight apyBase higher for stability.
TVL matters. High APY + low TVL = likely unsustainable or risky. Filter >$100K minimum, prefer >$10M.
Gas costs eat small positions. Ethereum mainnet Aave deposit ≈ $5-15. A $500 position rebalancing for 0.3% more APY loses money.
Bridge time. Cross-chain moves take 2-15 minutes. Don't show as instant.
Pendle yields are structured. They represent fixed-rate or leveraged yield — not simple lending. Flag this to users.

Script Reference

Script	Purpose	Usage
`scan_pools.py`	Fetch & rank all pools	`python3 scripts/scan_pools.py`
`scan_pools.py --json`	JSON output for automation	Scheduled monitoring
`scan_pools.py --chain Base`	Filter by chain	Chain-specific query
`scan_pools.py --protocol aave-v3`	Filter by protocol	Protocol-specific query

Integration with Other Skills

wallet — balance checks, transaction execution
across-bridge — cross-chain USDC transfers when rebalancing
wallet-policy — ensure policy is set before on-chain operations
coinglass / market-data — broader market context for yield decisions

@1247/yield-optimizer