optimize-yield

name	optimize-yield
description	Find and optimize DeFi yield farming opportunities across multiple protocols
shortcut	oy

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().padEnd()} ║
╠════════════════════════════════════════════════════════════════╣
║                      RISKS                                     ║
╠════════════════════════════════════════════════════════════════╣

╚════════════════════════════════════════════════════════════════╝
`;
    }

    () {
         lines = [];

         ( opp  opportunities) {
             apyStr = ;
             tvlStr = .(opp.);
             riskStr = .(opp.);

            lines.(
                 +
                
            );
        }

         lines.();
    }

    () {
         lines = [];

        lines.();
        lines.();
        lines.();
        lines.();

         ( alloc  portfolio..(, )) {
            lines.(
                 +
                
            );
        }

         lines.();
    }

    () {
         riskLevels = {
            : risks.. >  ?  : ,
            : risks. || ,
            : risks. || ,
            : risks. || 
        };

         lines = [];
         ( [type, level]  .(riskLevels)) {
             emoji = .(level);
            lines.();
        }

         lines.();
    }

    () {
         (tvl > )  ;
         (tvl > )  ;
         (tvl > )  ;
         ;
    }

    () {
         (score <= )  ;
         (score <= )  ;
         (score <= )  ;
         ;
    }

    () {
         (score > )  ;
         (score > )  ;
         (score > )  ;
         ;
    }

    () {
         emojis = {
            : ,
            : ,
            : ,
            : ,
            : 
        };
         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. - a.)[];
    }
}

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.