🤖How HedgeAI Selects Yield Pools
HedgeAI uses a structured approach to optimize yields and ensure users maximize returns while managing risk effectively. The system continuously evaluates pools, reallocates funds when better opportunities arise, and balances yield potential against liquidity stability.
How Hedge AI selects yield pools
To determine the best opportunities, HedgeAI analyzes multiple factors:
APY Analysis: HedgeAI fetches real-time APYs from various Solana-based DeFi protocols and compares past and projected trends. Pools with extreme APY fluctuations, which are often signs of temporary incentives or instability, are filtered out to prevent losses.
Liquidity & Pool Health Assessment: Liquidity is an important factor in ensuring smooth fund withdrawals and minimizing slippage. HedgeAI continuously checks:
Total liquidity levels to see if pools can handle large transactions.
Significant withdrawals that may indicate instability or foul play.
Past liquidity trends to identify pools at risk of sudden draining.
Risk-Based Filtering: User defined risk settings influence our AI agent’s pool selection:
High-risk pools with volatile APYs or low liquidity are only included for users who opt for aggressive strategies.
Pools with a history of exploits, irregular activity, or smart contract vulnerabilities are excluded.
Risk mitigation techniques, such as analysing the protocols reputation and online information are put into consideration when decision making.
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