Automatic interest rates optimization

Users who are “lenders only” will be proposed to invest in vaults that seek the highest yield for their assets. There will be vaults that seek the highest APY from a selected list of lending providers (Aave, Compound) and there will be vaults with more attractive APY coming from a list of yield farms or aggregators (Beefy, Yearn).

On the other side, users who are “lenders and borrowers” will mostly be interested in lowering the interest rates on their loans.

Both types will benefit from automatic rebalances of the vaults they are interacting with. This feature alleviates them from the burden of monitoring markets and refinancing their positions on their own.

Example:

A user with a low-risk profile has some WETH and wants to put it “to work”. They need to explore markets on different chains and select the most attractive one at the moment. Say they go to Aave v2 on Polygon. Two weeks later, they found out that Compound v2 on Mainnet proposes a higher yield and they want to switch to it. If they have to do it on their own, a bunch of transactions that incur additional costs is needed, not counting the time and the effort.

Instead, the user can go to Fuji, select a vault whose strategy is cross-chain lending optimization for Aave and Compound, and deposit from the chain where their assets live. All rebalances are done internally and the user doesn’t need to worry anymore about changes in market terms.

Furthermore, when the user decides they want to borrow against the deposited WETH and to get the borrowed amount on Arbitrum, another one-transaction operation is needed. In this case, they will switch to a new vault on another chain, optimizing this time for the borrowing side. And once again, only one transaction is needed.