tools-only Optimize DeFi Yield
Comprehensive DeFi yield optimization across protocols with APY tracking, risk assessment, and automated strategy recommendations.
Usage
When optimizing DeFi yield, implement comprehensive analysis across protocols:
Required Parameters
- Capital: Amount to deploy
- Risk Tolerance: low, medium, high
- Chains: ethereum, bsc, polygon, arbitrum, all
- Duration: Days to farm (7, 30, 90, 365)
- Strategy: stable, balanced, aggressive
Implementation
1. DeFi Yield Optimizer
class DeFiYieldOptimizer {
constructor() {
this.protocols = {
ethereum: {
aave: { api: 'https://api.aave.com/v3', type: 'lending' },
compound: { api: 'https://api.compound.finance/v3', type: 'lending' },
uniswap: { api: 'https://api.thegraph.com/subgraphs/name/uniswap/uniswap-v3', type: 'dex' },
curve: { api: 'https://api.curve.fi', type: 'stableswap' },
yearn: { api: 'https://api.yearn.finance/v1', type: 'aggregator' },
convex: { api: 'https://api.convexfinance.com', type: 'boost' }
},
bsc: {
pancakeswap: { api: 'https://api.pancakeswap.info/api/v2', type: 'dex' },
venus: { api: 'https://api.venus.io', type: 'lending' },
alpaca: { api: 'https://api.alpacafinance.org', type: 'leveraged' }
},
polygon: {
quickswap: { api: 'https://api.quickswap.exchange', type: 'dex' },
aavePolygon: { api: 'https://api.aave.com/polygon', type: 'lending' },
balancer: { api: 'https://api.balancer.fi', type: 'dex' }
}
};
this.riskScores = {
stablecoin: 1,
bluechip: 3,
altcoin: 5,
newProtocol: 8,
leveraged: 9
};
}
async optimizeYield(params) {
const {
capital = 10000,
riskTolerance = 'medium',
chains = ['ethereum', 'polygon'],
duration = 30,
strategy = 'balanced'
} = params;
// Fetch all opportunities
const opportunities = await this.fetchAllOpportunities(chains);
// Calculate risk-adjusted returns
const analyzed = await this.analyzeOpportunities(opportunities, {
capital,
duration,
riskTolerance
});
// Optimize portfolio allocation
const optimized = await this.optimizePortfolio(analyzed, {
strategy,
capital,
riskTolerance
});
// Generate recommendations
const recommendations = this.generateRecommendations(optimized);
return {
timestamp: Date.now(),
parameters: params,
opportunities: analyzed.slice(0, 20),
portfolio: optimized,
recommendations,
projections: await this.calculateProjections(optimized, duration),
risks: await this.assessRisks(optimized)
};
}
async fetchAllOpportunities(chains) {
const opportunities = [];
for (const chain of chains) {
const protocols = this.protocols[chain];
for (const [name, config] of Object.entries(protocols)) {
try {
const data = await this.fetchProtocolData(name, config, chain);
opportunities.push(...data);
} catch (error) {
console.error(`Failed to fetch ${name} on ${chain}:`, error);
}
}
}
return opportunities;
}
async fetchProtocolData(protocol, config, chain) {
const opportunities = [];
switch (config.type) {
case 'lending':
opportunities.push(...await this.fetchLendingOpportunities(protocol, chain));
break;
case 'dex':
opportunities.push(...await this.fetchLiquidityPools(protocol, chain));
break;
case 'stableswap':
opportunities.push(...await this.fetchStablePools(protocol, chain));
break;
case 'aggregator':
opportunities.push(...await this.fetchVaults(protocol, chain));
break;
case 'leveraged':
opportunities.push(...await this.fetchLeveragedFarms(protocol, chain));
break;
}
return opportunities;
}
async fetchLendingOpportunities(protocol, chain) {
// Simulate API call
const markets = await this.mockFetchMarkets(protocol);
return markets.map(market => ({
protocol,
chain,
type: 'LENDING',
asset: market.asset,
apy: market.supplyAPY,
apyBase: market.supplyAPY,
apyReward: market.rewardAPY || 0,
tvl: market.totalSupply * market.price,
utilization: market.utilization,
risk: this.calculateRisk(market),
requirements: {
minAmount: 0,
lockPeriod: 0,
gas: this.estimateGas('lending', chain)
}
}));
}
async fetchLiquidityPools(protocol, chain) {
// Simulate fetching LP opportunities
const pools = await this.mockFetchPools(protocol);
return pools.map(pool => ({
protocol,
chain,
type: 'LIQUIDITY',
pair: `${pool.token0}/${pool.token1}`,
apy: pool.apy,
apyBase: pool.fees24h * 365 / pool.tvl * 100,
apyReward: pool.rewardAPY || 0,
tvl: pool.tvl,
volume24h: pool.volume24h,
impermanentLoss: this.estimateImpermanentLoss(pool),
risk: this.calculatePoolRisk(pool),
requirements: {
minAmount: 100,
lockPeriod: 0,
gas: this.estimateGas('liquidity', chain)
}
}));
}
async fetchVaults(protocol, chain) {
// Simulate vault strategies
const vaults = await this.mockFetchVaults(protocol);
return vaults.map(vault => ({
protocol,
chain,
type: 'VAULT',
name: vault.name,
strategy: vault.strategy,
apy: vault.apy,
apyBase: vault.netAPY,
apyReward: 0,
tvl: vault.tvl,
performanceFee: vault.performanceFee,
managementFee: vault.managementFee,
risk: this.calculateVaultRisk(vault),
requirements: {
minAmount: vault.minDeposit,
lockPeriod: vault.lockPeriod || 0,
gas: this.estimateGas('vault', chain)
}
}));
}
async analyzeOpportunities(opportunities, params) {
const analyzed = [];
for (const opp of opportunities) {
const analysis = {
...opp,
netAPY: this.calculateNetAPY(opp, params),
riskScore: this.calculateRiskScore(opp),
capitalEfficiency: this.calculateCapitalEfficiency(opp, params.capital),
expectedReturn: this.calculateExpectedReturn(opp, params),
breakeven: this.calculateBreakeven(opp, params),
score: 0
};
// Calculate composite score
analysis.score = this.calculateOpportunityScore(analysis, params);
// Filter by risk tolerance
if (this.meetsRiskTolerance(analysis, params.riskTolerance)) {
analyzed.push(analysis);
}
}
return analyzed.sort((a, b) => b.score - a.score);
}
calculateNetAPY(opp, params) {
let netAPY = opp.apy;
// Subtract fees
if (opp.performanceFee) {
netAPY *= (1 - opp.performanceFee / 100);
}
if (opp.managementFee) {
netAPY -= opp.managementFee;
}
// Account for gas costs
const gasPerYear = (365 / params.duration) * opp.requirements.gas;
const gasImpact = (gasPerYear / params.capital) * 100;
netAPY -= gasImpact;
return Math.max(0, netAPY);
}
calculateRiskScore(opp) {
let score = 5; // Base risk
// Protocol risk
const protocolAge = this.getProtocolAge(opp.protocol);
if (protocolAge < 90) score += 3;
else if (protocolAge < 365) score += 1;
// TVL risk
if (opp.tvl < 1000000) score += 3;
else if (opp.tvl < 10000000) score += 2;
else if (opp.tvl < 100000000) score += 1;
// Type risk
const typeRisks = {
LENDING: 2,
LIQUIDITY: 4,
VAULT: 3,
LEVERAGED: 8
};
score += typeRisks[opp.type] || 5;
// Impermanent loss risk
if (opp.impermanentLoss) {
score += Math.min(5, opp.impermanentLoss);
}
return Math.min(10, score);
}
calculateOpportunityScore(analysis, params) {
const weights = {
low: { return: 0.3, risk: 0.5, efficiency: 0.2 },
medium: { return: 0.5, risk: 0.3, efficiency: 0.2 },
high: { return: 0.7, risk: 0.1, efficiency: 0.2 }
};
const w = weights[params.riskTolerance];
const returnScore = Math.min(100, analysis.netAPY);
const riskScore = 100 - (analysis.riskScore * 10);
const efficiencyScore = analysis.capitalEfficiency * 100;
return (returnScore * w.return) +
(riskScore * w.risk) +
(efficiencyScore * w.efficiency);
}
async optimizePortfolio(opportunities, params) {
const portfolio = {
allocations: [],
totalAPY: 0,
totalRisk: 0,
totalAllocated: 0,
diversification: 0
};
// Strategy-based allocation
const strategies = {
stable: this.stableStrategy,
balanced: this.balancedStrategy,
aggressive: this.aggressiveStrategy
};
const allocate = strategies[params.strategy].bind(this);
portfolio.allocations = allocate(opportunities, params);
// Calculate portfolio metrics
for (const alloc of portfolio.allocations) {
portfolio.totalAPY += alloc.apy * alloc.percentage / 100;
portfolio.totalRisk += alloc.riskScore * alloc.percentage / 100;
portfolio.totalAllocated += alloc.amount;
}
portfolio.diversification = this.calculateDiversification(portfolio.allocations);
return portfolio;
}
stableStrategy(opportunities, params) {
const allocations = [];
let remainingCapital = params.capital;
// Focus on low-risk opportunities
const stableOpps = opportunities
.filter(o => o.riskScore <= 3)
.slice(0, 5);
for (const opp of stableOpps) {
const allocation = Math.min(
remainingCapital * 0.3,
remainingCapital
);
if (allocation > opp.requirements.minAmount) {
allocations.push({
...opp,
amount: allocation,
percentage: (allocation / params.capital) * 100
});
remainingCapital -= allocation;
}
}
return allocations;
}
balancedStrategy(opportunities, params) {
const allocations = [];
let remainingCapital = params.capital;
// Diversify across risk levels
const buckets = {
low: opportunities.filter(o => o.riskScore <= 3).slice(0, 2),
medium: opportunities.filter(o => o.riskScore > 3 && o.riskScore <= 6).slice(0, 2),
high: opportunities.filter(o => o.riskScore > 6).slice(0, 1)
};
const allocations_pct = { low: 0.5, medium: 0.35, high: 0.15 };
for (const [risk, opps] of Object.entries(buckets)) {
const bucketCapital = params.capital * allocations_pct[risk];
const perOpp = bucketCapital / opps.length;
for (const opp of opps) {
if (perOpp > opp.requirements.minAmount) {
allocations.push({
...opp,
amount: perOpp,
percentage: (perOpp / params.capital) * 100
});
}
}
}
return allocations;
}
aggressiveStrategy(opportunities, params) {
const allocations = [];
// Focus on highest returns regardless of risk
const topOpps = opportunities
.sort((a, b) => b.netAPY - a.netAPY)
.slice(0, 3);
const weights = [0.5, 0.3, 0.2];
topOpps.forEach((opp, i) => {
const amount = params.capital * weights[i];
if (amount > opp.requirements.minAmount) {
allocations.push({
...opp,
amount,
percentage: weights[i] * 100
});
}
});
return allocations;
}
calculateProjections(portfolio, duration) {
const daily = portfolio.totalAPY / 365;
const projections = {
daily: (portfolio.totalAllocated * daily / 100),
weekly: (portfolio.totalAllocated * daily * 7 / 100),
monthly: (portfolio.totalAllocated * daily * 30 / 100),
total: (portfolio.totalAllocated * daily * duration / 100),
finalValue: portfolio.totalAllocated * (1 + daily * duration / 100)
};
return projections;
}
assessRisks(portfolio) {
return {
protocolRisk: this.assessProtocolRisk(portfolio),
smartContractRisk: this.assessSmartContractRisk(portfolio),
impermanentLoss: this.assessImpermanentLoss(portfolio),
liquidityRisk: this.assessLiquidityRisk(portfolio),
composabilityRisk: this.assessComposabilityRisk(portfolio),
overall: portfolio.totalRisk
};
}
assessProtocolRisk(portfolio) {
const risks = [];
for (const alloc of portfolio.allocations) {
if (this.getProtocolAge(alloc.protocol) < 180) {
risks.push({
protocol: alloc.protocol,
risk: 'NEW_PROTOCOL',
severity: 'MEDIUM'
});
}
if (alloc.tvl < 10000000) {
risks.push({
protocol: alloc.protocol,
risk: 'LOW_TVL',
severity: 'LOW'
});
}
}
return risks;
}
estimateImpermanentLoss(pool) {
// Simplified IL calculation
const priceRatio = pool.token0Price / pool.token1Price;
const priceChange = Math.abs(1 - priceRatio);
if (priceChange < 0.1) return 0.5;
if (priceChange < 0.25) return 1.5;
if (priceChange < 0.5) return 3.5;
if (priceChange < 1) return 5.5;
return 8;
}
}
2. Display Interface
class YieldDisplay {
displayOptimization(result) {
return `
╔════════════════════════════════════════════════════════════════╗
║ DEFI YIELD OPTIMIZATION ║
╠════════════════════════════════════════════════════════════════╣
║ Capital: $${result.parameters.capital.toLocaleString().padEnd(47)} ║
║ Strategy: ${result.parameters.strategy.padEnd(48)} ║
║ Duration: ${(result.parameters.duration + ' days').padEnd(48)} ║
║ Risk Level: ${result.parameters.riskTolerance.padEnd(48)} ║
╠════════════════════════════════════════════════════════════════╣
║ TOP OPPORTUNITIES ║
╠════════════════════════════════════════════════════════════════╣
${this.formatOpportunities(result.opportunities.slice(0, 5))}
╠════════════════════════════════════════════════════════════════╣
║ OPTIMIZED PORTFOLIO ║
╠════════════════════════════════════════════════════════════════╣
${this.formatPortfolio(result.portfolio)}
╠════════════════════════════════════════════════════════════════╣
║ PROJECTIONS ║
╠════════════════════════════════════════════════════════════════╣
║ Daily Yield: $${result.projections.daily.toFixed(2).padEnd(47)} ║
║ Weekly Yield: $${result.projections.weekly.toFixed(2).padEnd(47)} ║
║ Monthly Yield: $${result.projections.monthly.toFixed(2).padEnd(47)} ║
║ Total Return: $${result.projections.total.toFixed(2).padEnd(47)} ║
║ Final Value: $${result.projections.finalValue.toFixed(2).padEnd(47)} ║
╠════════════════════════════════════════════════════════════════╣
║ RISKS ║
╠════════════════════════════════════════════════════════════════╣
${this.formatRisks(result.risks)}
╚════════════════════════════════════════════════════════════════╝
`;
}
formatOpportunities(opportunities) {
const lines = [];
for (const opp of opportunities) {
const apyStr = `${opp.apy.toFixed(2)}%`;
const tvlStr = this.formatTVL(opp.tvl);
const riskStr = this.getRiskEmoji(opp.riskScore);
lines.push(
`║ ${opp.protocol.padEnd(12)} ${opp.type.padEnd(10)} ` +
`${apyStr.padEnd(8)} TVL: ${tvlStr.padEnd(10)} ${riskStr} ║`
);
}
return lines.join('\n');
}
formatPortfolio(portfolio) {
const lines = [];
lines.push(`║ Total APY: ${portfolio.totalAPY.toFixed(2)}% ║`);
lines.push(`║ Risk Score: ${portfolio.totalRisk.toFixed(1)}/10 ║`);
lines.push(`║ Diversification: ${this.getDiversificationLabel(portfolio.diversification)} ║`);
lines.push(`║ ║`);
for (const alloc of portfolio.allocations.slice(0, 3)) {
lines.push(
`║ • ${alloc.protocol.padEnd(10)} $${alloc.amount.toFixed(0).padEnd(8)} ` +
`(${alloc.percentage.toFixed(1)}%) APY: ${alloc.apy.toFixed(2)}% ║`
);
}
return lines.join('\n');
}
formatRisks(risks) {
const riskLevels = {
protocolRisk: risks.protocolRisk.length > 0 ? 'PRESENT' : 'LOW',
smartContractRisk: risks.smartContractRisk || 'MEDIUM',
impermanentLoss: risks.impermanentLoss || 'MODERATE',
liquidityRisk: risks.liquidityRisk || 'LOW'
};
const lines = [];
for (const [type, level] of Object.entries(riskLevels)) {
const emoji = this.getRiskLevelEmoji(level);
lines.push(`║ ${type.padEnd(20)} ${emoji} ${level.padEnd(25)} ║`);
}
return lines.join('\n');
}
formatTVL(tvl) {
if (tvl > 1e9) return `$${(tvl / 1e9).toFixed(2)}B`;
if (tvl > 1e6) return `$${(tvl / 1e6).toFixed(2)}M`;
if (tvl > 1e3) return `$${(tvl / 1e3).toFixed(2)}K`;
return `$${tvl.toFixed(0)}`;
}
getRiskEmoji(score) {
if (score <= 2) return '';
if (score <= 5) return '';
if (score <= 7) return '';
return '';
}
getDiversificationLabel(score) {
if (score > 0.8) return 'EXCELLENT';
if (score > 0.6) return 'GOOD';
if (score > 0.4) return 'MODERATE';
return 'LOW';
}
getRiskLevelEmoji(level) {
const emojis = {
LOW: '',
MODERATE: '️',
MEDIUM: '️',
HIGH: '',
PRESENT: '️'
};
return emojis[level] || '';
}
}
3. Auto-Compound Calculator
class AutoCompoundCalculator {
calculateOptimalFrequency(params) {
const {
principal,
apy,
gasCost,
duration
} = params;
const frequencies = [1, 7, 14, 30, 90, 365];
const results = [];
for (const freq of frequencies) {
const compoundsPerYear = 365 / freq;
const gasPerYear = compoundsPerYear * gasCost;
const apr = apy / 100;
// Calculate compound interest with gas costs
const finalValue = principal * Math.pow(1 + apr / compoundsPerYear, compoundsPerYear * duration / 365) - gasPerYear;
const netReturn = finalValue - principal;
const netAPY = (netReturn / principal) * (365 / duration) * 100;
results.push({
frequency: freq,
compounds: Math.floor(duration / freq),
gasCost: gasPerYear * duration / 365,
finalValue,
netAPY,
profit: netReturn
});
}
return results.sort((a, b) => b.netAPY - a.netAPY)[0];
}
}
Error Handling
try {
const optimizer = new DeFiYieldOptimizer();
const result = await optimizer.optimizeYield({
capital: 10000,
riskTolerance: 'medium',
chains: ['ethereum', 'polygon'],
duration: 30,
strategy: 'balanced'
});
const display = new YieldDisplay();
console.log(display.displayOptimization(result));
} catch (error) {
console.error('Yield optimization failed:', error);
}
This command provides comprehensive DeFi yield optimization with risk assessment and portfolio allocation strategies.