Whether you are a DeFi beginner or expert, we all face the same problems: the DKWTS — Don’t Know Where to Start. From watching YouTube videos to reading technical whitepapers on specific protocols, we often find ourselves drowning in a sea of information that is hard to digest and verify.
You are probably thinking ‘No pain, no gain. If you want high APR, then you’ll have to do some hard work.’ Fair enough, we agree with that!
But what happens when you spend weeks or even months DYOR, only for its yields to be uncompetitive by the time you’re ready to jump in? You will then find yourself in a dilemma — go with the original protocol that you’ve invested so much time in, or start from scratch and redo the painful process of researching a brand-new protocol.
Besides that, most of us would want to diversify our portfolio to avoid concentration risk. With hundreds of protocols in DeFi and more being launched, imagine how much time we have to spend on finding the right protocols. And finding the right protocols isn’t the end of the road. The more diverse your portfolio is, the more time you need to spend monitoring all these protocols. And we haven’t even started talking about how expensive it would be to update these portfolios because of the gas fee every time you reallocate your funds!
We Got You Covered
Don’t worry — you’re not alone. We’ve also suffered from situations like these. We have struggled, we have experienced the pain but, most importantly, we have had enough of it. So, we’ve decided to build something.
We proudly present to you LazyOtter’s key feature: Automated Vaults — A tool that allows you to deposit your assets and leave the rest to smart contracts.
Let us explain more about our Automated Vaults below:
The automated vaults consist of two layers — Vault and Strategy. Vaults are smart contracts that control how funds are allocated, compounded, and rebalanced across yield farming strategies. It automates the following key processes:
- Fund Allocation
Upon new deposits, the automated vault will scan across underlying strategies to look for the best strategy to deposit the funds. The best strategy should optimize the risk-adjusted yields for the vault portfolio, which means the algorithm should take into account both the APR and risk rating. On the flip side, when users decide to withdraw their funds, the vault will withdraw from the strategy with poor performance or risk rating. This is to make sure upon each deposit or withdrawal, the vault’s portfolio allocation is a step closer to the optimal weight.
Unlike most yield aggregators that reinvest the yields to the exact same protocol where the yields are generated, LazyOtter’s auto-compounding algorithm further maximizes yields as the yields generated will be reinvested to the strategy with a higher APR at the same risk level. It’s like treating the yields earned as a new deposit. This mechanism can effectively make small improvements accumulating into a big difference with the frequent compounding effect.
- Portfolio Rebalancing
What happens if the strategies’ APR fluctuates drastically? This is when the auto-rebalancing steps in. The rebalancing algorithm is written such that the funds will be reallocated based on an updated optimal portfolio weight.
LazyOtter automated vaults aim to take full care of your DeFi portfolio management from seeking the right protocols and optimizing your yield compounding to reallocating funds across strategies to diversify yield sources. As everything is automatic after you deposit, you can enjoy being LAZY, instead of struggling with DKWTS. Lastly, your deposits are completely liquid. You can withdraw at any time with nearly no withdrawal fees.
In our next Medium article, we will go deeper into the key benefits automated vault offers, as well as some questions you may have in your mind. Stay Tuned!
About LazyOtter Finance
LazyOtter is a next-generation multi-chain automated yield platform. Earn yields and mitigate risks all in one place.
Interested in jumping aboard the LazyOtter raft?
Come talk to us on Twitter and Discord.