The current iteration of ETHA Lend (v1) as a Yield Optimizer is a discovery API that factors in the volatility of the asset’s yields, past yield (currently up to 90 days), and the budget of assets supplied in order to determine the optimal asset allocation.
What does the discovery algorithm do?
Our discovery algorithm calculates the best route to allocate an asset across the broader DeFi market in order to optimize your earnings on investments.
How does it work?
In the current iteration, the discovery algorithm factors in the volatility of the asset’s current and past yield (currently up to 90 days) and the supplied amount to determine the optimal asset allocation. The volatility timeframe is configurable but uses the most recent data by default if not configured.
The algorithm provides a cost-effective balance of highly volatile and stable yield while eliminating cost inefficiencies. Since the algorithm takes into consideration the amount a liquidity provider supplies, smaller LPs can benefit from it as well. 🔄Update: The discovery algorithm has received an upgrade. Prior to this update, it would take 45 seconds approx. for the discovery algorithm to calculate asset allocation on supply as large as a million USD. For assets supplied under $1000, it would take around 10 seconds. However, with the latest update, the response time has been reduced to under a second.
With this update, the algorithm collects all set factors to calculate asset allocation for a supply of a million USD in under a second.
ETHA Lend is optimizing Yields on a Fast Chain!⚡️
Yield optimizers on fast chains, such as the Polygon sidechain, present a unique set of challenges and opportunities. Taking the scenario of the Ethereum network, where gas fees are high, and scalability is low, it makes perfect sense to focus on gas optimization and inserting resources to deploy strategies. However, launching on Polygon, where the fees are near zero, the focus shifts to optimizing automation to secure optimal yields, emphasizing the amount of interactions needed to constantly improve a functioning APY. Thus, a bridge opens up to more complex strategies, more frequent rebalancing, and asset allocation. By leveraging automation, we can provide a rather intuitive and elegant way for liquidity providers to interact with various protocols, and other yield earning opportunities without having to constantly make manual actions on the end user’s part. This is a key step for leveling the field for all types of user and asset classes, to have access to the same opportunities that were only available to the top 1%.
Launching the protocol and its ecosystem on Polygon with its connection to a hybrid infrastructure has removed more constraints for our users than just high gas fees. As part of our long-term goal, the protocol will evolve, and it will contribute to the growth of the larger DeFi terrain. This is and every future endeavor shall be coordinated with our community.