What is a Yield Optimizer?
A yield optimizer is a tool used for generating the best possible yield in the DeFi ecosystem. The DeFi world is highly volatile and the different DeFi protocols are unable to maintain a stable APY. This is one of the blessings as well as a curse for the DeFi community. As a blessing, the unstable yields offer a unique chance to the users to quickly shift between different protocols and make considerable profits from the highest proposed yield. However, this is only useful for those people who are comfortable or skilled in doing so.
Moreover, this process requires extensive expertise and manual labor in identifying a suitable protocol, keeping an eye on the APY or APR offered by different protocols, and then executing a complete analysis to decide where to stake the funds. The intensity of this process increases multifold when users have to manage their assets across different exchanges and invest in protocols based on other platforms.
A yield optimizer allows users to get the best possible APY by using complex algorithms and automatically staking the users' funds on different protocols. Replacing the manual process of depositing, withdrawing, and exchanging tokens on multiple protocols and between multiple liquidity pools, a yield optimizer handles the complete allocation of the user's digital assets.
The Genius Yield yield optimizer also works similarly by taking it one step further. Rather than just one protocol, Genius Yield offers yield aggregation between multiple protocol platforms on Cardano.
Last modified 2yr ago