Feature Highlight: Automated Vault (Part 1)

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The Dilemma

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!

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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.

Diagram: Overview of LazyOtter Automated Vault
  1. 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.
  2. Compounding
    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.
  3. 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.

About LazyOtter Finance

LazyOtter is a next-generation multi-chain automated yield platform. Earn yields and mitigate risks all in one place.

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