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The strategy engine is the brain of the yield agent. It evaluates every potential rebalance for net profitability before executing.

Decision Criteria

Every rebalance must pass all of the following checks:

1. APY Threshold

Move TypeMinimum ΔAPY
Same-chain>= 1%
Cross-chain>= 3%
Same-chain moves have no bridge fee, so a lower threshold is acceptable. Cross-chain moves must justify the CCTP cost.

2. Net Gain Validation

The engine simulates the move over a 2-day holding period to ensure the APY improvement produces a meaningful net gain after any fees.

3. Anti-Oscillation

If the agent recently moved away from a vault, it won’t move back unless the original vault is now >= 3% better than the current position. This prevents ping-pong behavior between vaults.

4. Cooldown

A minimum of 15 minutes between consecutive cross-chain moves prevents rapid-fire transactions.

Transfer Mode Selection

For cross-chain moves, the engine calculates the optimal CCTP transfer mode:
breakeven = (fee% / ΔAPY) * 8760 hours
BreakevenModeFee
< 6 hoursFast Transfer0.01%
>= 6 hoursStandard Transfer0%
When the APY gain is large, the Fast Transfer fee is recovered quickly — so speed is prioritized. When the gain is modest, the Standard Transfer saves the fee.

Monitoring Cycle

  • The agent checks all vault APYs every 10 minutes
  • Rankings are computed globally across all chains
  • Decisions include detailed logging with vault rankings and reasoning
  • Each cycle produces a strategy summary visible in the agent logs

Example Decision

Current: Morpho USDC Core on Base at 4.2% APY Best available: Euler USDC Prime on Arbitrum at 8.1% APY ΔAPY = 3.9% (above 3% cross-chain threshold) Breakeven for Fast Transfer: (0.01% / 3.9%) * 8760 = 22.5 hours -> Standard Transfer selected Net gain over 2 days validated -> Execute rebalance