Staking & Yield Optimization Automation

[grantfox-oss]

Priority: High
Category: DeFi

Description

Build an automated system that optimizes yield across DeFi protocols (Aave, Compound, Lido). Automatically move funds between protocols to maximize APY while maintaining risk constraints.

Definition of Done

• Protocol APY monitoring system
• Automated migration between lending protocols
• Risk scoring for each protocol
• Gas cost analysis before migrations
• Snapshot of yield earnings over time

Acceptance Criteria

• APY checked hourly across all supported protocols
• Migrate funds only if net gain after gas > 0.5%
• Protocol risk scores limit which platforms can be used
• Yield tracking dashboard available to users
• Email notifications before large migrations
• All movements logged and auditable
• Simulation available before enabling auto-migration

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[Ebenezer199914]

can i work on this issue

[Ebenezer199914]

can i work on this

[Hassanmovic98]

System monitors APY hourly across Aave, Compound, Lido. When a protocol beats the current position by more than 0.5% after gas costs, the system simulates the migration, scores the new protocol's risk, and if risk is within constraints, executes the move. All migrations are logged and auditable. Users see a dashboard with yield history and get email alerts before large movements.

APY monitoring pulls from protocol APIs or Subgraph queries. Risk scoring is based on audit status, TVL, and protocol age — each protocol gets a tier (safe, moderate, risky) that gates which migrations are allowed. Gas costs come from on-chain simulation before any actual transaction.

Core logic: fetch APY data, calculate net gain (new APY minus gas cost), compare against threshold. If it passes, risk check the target. If it passes, simulate on-chain, get gas estimate, final check on the net gain, then execute. Every step is logged — user, protocol pair, APY delta, gas cost, risk score, timestamp.

Dashboard shows wallet balance, current APY, projected annual yield, migration history with gas costs paid. Email fires before migrations over a certain size, includes details: from/to protocol, APY difference, expected gas.

Simulation is a dry-run endpoint that shows what would happen without committing.

[grantfox-oss]

🦊 GrantFox — @Ebenezer199914 has been assigned to this issue as part of the Official Campaign campaign!

Next steps:

1. Open a Pull Request referencing this issue (e.g., Closes #76)
2. Your PR will be reviewed by the SourceXXL maintainers

Good luck! Track your progress on GrantFox.