Optimizing Defi Yields

---
name: optimizing-defi-yields
description: |
  Find and compare DeFi yield opportunities across protocols with APY calculations, risk assessment, and optimization recommendations.
  Use when searching for yield farming opportunities, comparing DeFi protocols, or analyzing APY/APR rates.
  Trigger with phrases like "find DeFi yields", "compare APY", "best yield farming", "optimize DeFi returns", "stablecoin yields", or "liquidity pool rates".

allowed-tools: Read, Write, Bash(crypto:yield-*)
version: 2.0.0
author: Jeremy Longshore <jeremy@intentsolutions.io>
license: MIT
---

# Optimizing DeFi Yields

## Overview

Find and compare DeFi yield opportunities across protocols. Aggregates data from DeFiLlama and other sources to provide APY/APR comparisons, risk assessments, and optimization recommendations for yield farming strategies.

## Prerequisites

Before using this skill, ensure you have:

- Python 3.8+ installed
- Internet access for API queries
- Understanding of DeFi concepts (APY, APR, TVL, impermanent loss)

## Instructions

### Step 1: Search for Yield Opportunities

Find top yields across all chains:

```bash
python {baseDir}/scripts/yield_optimizer.py --top 20
```

Filter by specific chain:

```bash
python {baseDir}/scripts/yield_optimizer.py --chain ethereum --top 10
```

### Step 2: Filter by Criteria

Filter by minimum TVL (for safety):

```bash
python {baseDir}/scripts/yield_optimizer.py --min-tvl 10000000 --top 15
```

Filter by asset type:

```bash
python {baseDir}/scripts/yield_optimizer.py --asset USDC --chain ethereum
```

Filter by protocol:

```bash
python {baseDir}/scripts/yield_optimizer.py --protocol aave,compound,curve
```

### Step 3: Apply Risk Filters

Show only audited protocols:

```bash
python {baseDir}/scripts/yield_optimizer.py --audited-only --min-tvl 1000000
```

Filter by risk level:

| Level | Flag | Description |
|-------|------|-------------|
| Low | `--risk low` | Blue-chip, battle-tested protocols |
| Medium | `--risk medium` | Established protocols, moderate risk |
| High | `--risk high` | Newer protocols, higher yields |

```bash
python {baseDir}/scripts/yield_optimizer.py --risk low --min-apy 3
```

### Step 4: Analyze Specific Opportunities

Get detailed breakdown for a pool:

```bash
python {baseDir}/scripts/yield_optimizer.py --pool "aave-v3-usdc-ethereum" --detailed
```

Compare specific protocols:

```bash
python {baseDir}/scripts/yield_optimizer.py --compare aave,compound,spark --asset USDC
```

### Step 5: Export Results

Export to JSON for further analysis:

```bash
python {baseDir}/scripts/yield_optimizer.py --top 50 --format json --output yields.json
```

Export to CSV:

```bash
python {baseDir}/scripts/yield_optimizer.py --chain ethereum --format csv --output eth_yields.csv
```

## Output

### Yield Summary Table
```
==============================================================================
  DEFI YIELD OPTIMIZER                              2026-01-15 15:30 UTC
==============================================================================

  TOP YIELD OPPORTUNITIES
------------------------------------------------------------------------------
  Protocol       Pool          Chain      TVL        APY    Risk    Score
  Convex        cvxCRV        Ethereum   $450M    12.5%    Low     9.2
  Aave v3       USDC          Ethereum   $2.1B     4.2%    Low     9.8
  Curve         3pool         Ethereum   $890M     3.8%    Low     9.5
  Compound v3   USDC          Ethereum   $1.5B     3.2%    Low     9.6
  Yearn         yvUSDC        Ethereum   $120M     5.1%    Medium  7.8
------------------------------------------------------------------------------

  APY BREAKDOWN (Top Result)
------------------------------------------------------------------------------
  Base APY:     4.5%
  Reward APY:   8.0% (CRV + CVX)
  Total APY:    12.5%
  IL Risk:      None (single-sided)
==============================================================================
```

### Risk Assessment
```
  RISK ANALYSIS: Convex cvxCRV
------------------------------------------------------------------------------
  Audit Status:    ✓ Audited (Trail of Bits, OpenZeppelin)
  Protocol Age:    3+ years
  TVL:             $450M (stable)
  TVL Trend:       +5% (30d)
  Risk Score:      9.2/10 (Low Risk)

  Risk Factors:
  • Smart contract dependency on Curve
  • CRV/CVX reward token volatility
  • Vote-lock mechanics
==============================================================================
```

## Error Handling

See `{baseDir}/references/errors.md` for comprehensive error handling.

Common issues:
- **API timeout**: Uses cached data with staleness warning
- **No pools found**: Broaden search criteria
- **Invalid protocol**: Check supported protocols list

## Examples

See `{baseDir}/references/examples.md` for detailed usage examples.

### Quick Examples

**Find stablecoin yields**:
```bash
python yield_optimizer.py --asset USDC,USDT,DAI --min-tvl 10000000
```

**Low-risk opportunities**:
```bash
python yield_optimizer.py --risk low --audited-only --min-apy 2
```

**Multi-chain search**:
```bash
python yield_optimizer.py --chain ethereum,arbitrum,polygon --top 20
```

**Export top yields**:
```bash
python yield_optimizer.py --top 100 --format json --output all_yields.json
```

## Configuration

Settings in `{baseDir}/config/settings.yaml`:

- **Default chain**: Primary chain to search
- **Cache TTL**: How long to cache API responses
- **Risk weights**: Customize risk scoring factors
- **Min TVL default**: Default minimum TVL filter

## Resources

- DeFiLlama: https://defillama.com/yields - Yield data source
- DeFi Safety: https://defisafety.com/ - Protocol security scores
- Impermanent Loss Calculator: Understand LP risks