optimizing-defi-yields

# Optimizing DeFi Yields ## Overview Find and compare DeFi yield opportunities across protocols. Aggregates data from DeFiLlama and other sources to provide APY/APR comparisons, risk assessments, and optimization recommendations for yield farming strategies. ## Prerequisites Before using this skill, ensure you have: - Python 3.8+ installed - Internet access for API queries - Understanding of DeFi concepts (APY, APR, TVL, impermanent loss) ## Instructions ### Step 1: Search for Yield Opportunities Find top yields across all chains: ```bash python {baseDir}/scripts/yield_optimizer.py --top 20 ``` Filter by specific chain: ```bash python {baseDir}/scripts/yield_optimizer.py --chain ethereum --top 10 ``` ### Step 2: Filter by Criteria Filter by minimum TVL (for safety): ```bash python {baseDir}/scripts/yield_optimizer.py --min-tvl 10000000 --top 15 ``` Filter by asset type: ```bash python {baseDir}/scripts/yield_optimizer.py --asset USDC --chain ethereum ``` Filter by protocol: ```bash python {baseDir}/scripts/yield_optimizer.py --protocol aave,compound,curve ``` ### Step 3: Apply Risk Filters Show only audited protocols: ```bash python {baseDir}/scripts/yield_optimizer.py --audited-only --min-tvl 1000000 ``` Filter by risk level: | Level | Flag | Description | |-------|------|-------------| | Low | `--risk low` | Blue-chip, battle-tested protocols | | Medium | `--risk medium` | Established protocols, moderate risk | | High | `--risk high` | Newer protocols, higher yields | ```bash python {baseDir}/scripts/yield_optimizer.py --risk low --min-apy 3 ``` ### Step 4: Analyze Specific Opportunities Get detailed breakdown for a pool: ```bash python {baseDir}/scripts/yield_optimizer.py --pool "aave-v3-usdc-ethereum" --detailed ``` Compare specific protocols: ```bash python {baseDir}/scripts/yield_optimizer.py --compare aave,compound,spark --asset USDC ``` ### Step 5: Export Results Export to JSON for further analysis: ```bash python {baseDir}/scripts/yield_optimizer.py --top 50 --format json --output yields.json ``` Export to CSV: ```bash python {baseDir}/scripts/yield_optimizer.py --chain ethereum --format csv --output eth_yields.csv ``` ## Output ### Yield Summary Table ``` ============================================================================== DEFI YIELD OPTIMIZER 2026-01-15 15:30 UTC ============================================================================== TOP YIELD OPPORTUNITIES ------------------------------------------------------------------------------ Protocol Pool Chain TVL APY Risk Score Convex cvxCRV Ethereum $450M 12.5% Low 9.2 Aave v3 USDC Ethereum $2.1B 4.2% Low 9.8 Curve 3pool Ethereum $890M 3.8% Low 9.5 Compound v3 USDC Ethereum $1.5B 3.2% Low 9.6 Yearn yvUSDC Ethereum $120M 5.1% Medium 7.8 ------------------------------------------------------------------------------ APY BREAKDOWN (Top Result) ------------------------------------------------------------------------------ Base APY: 4.5% Reward APY: 8.0% (CRV + CVX) Total APY: 12.5% IL Risk: None (single-sided) ============================================================================== ``` ### Risk Assessment ``` RISK ANALYSIS: Convex cvxCRV ------------------------------------------------------------------------------ Audit Status: ✓ Audited (Trail of Bits, OpenZeppelin) Protocol Age: 3+ years TVL: $450M (stable) TVL Trend: +5% (30d) Risk Score: 9.2/10 (Low Risk) Risk Factors: • Smart contract dependency on Curve • CRV/CVX reward token volatility • Vote-lock mechanics ============================================================================== ``` ## Error Handling See `{baseDir}/references/errors.md` for comprehensive error handling. Common issues: - **API timeout**: Uses cached data with staleness warning - **No pools found**: Broaden search criteria - **Invalid protocol**: Check supported protocols list ## Examples See `{baseDir}/references/examples.md` for detailed usage examples. ### Quick Examples **Find stablecoin yields**: ```bash python yield_optimizer.py --asset USDC,USDT,DAI --min-tvl 10000000 ``` **Low-risk opportunities**: ```bash python yield_optimizer.py --risk low --audited-only --min-apy 2 ``` **Multi-chain search**: ```bash python yield_optimizer.py --chain ethereum,arbitrum,polygon --top 20 ``` **Export top yields**: ```bash python yield_optimizer.py --top 100 --format json --output all_yields.json ``` ## Configuration Settings in `{baseDir}/config/settings.yaml`: - **Default chain**: Primary chain to search - **Cache TTL**: How long to cache API responses - **Risk weights**: Customize risk scoring factors - **Min TVL default**: Default minimum TVL filter ## Resources - DeFiLlama: https://defillama.com/yields - Yield data source - DeFi Safety: https://defisafety.com/ - Protocol security scores - Impermanent Loss Calculator: Understand LP risks