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DeFi Yield Aggregator with Risk Assessment

Project Overview

The DeFi Yield Aggregator is a decentralized finance application that automatically finds and allocates funds to the best yield-generating protocols while providing comprehensive risk assessment for informed decision-making. In the fragmented DeFi landscape, users face challenges in finding optimal yields while understanding the associated risks. Our platform solves this by creating a unified interface that simplifies yield farming with transparent risk information.

Problem Statement

In today's DeFi ecosystem, users face significant challenges:

  1. Yield Fragmentation: Yields are scattered across numerous protocols and constantly changing
  2. Risk Opacity: Risk factors are difficult to assess and compare across protocols
  3. High Gas Costs: Moving between protocols to chase yields results in excessive gas fees
  4. Complexity Barrier: DeFi requires technical knowledge that excludes many potential users

Solution

Our DeFi Yield Aggregator addresses these challenges through:

  • Smart Contract Architecture: Protocol-agnostic design that can integrate with any DeFi protocol
  • Risk Assessment Engine: Evaluates protocols based on audit history, TVL, age, governance model, and past security incidents
  • Yield Optimization Strategy: Allocates funds based on both yield and risk profile according to user preferences
  • User-Friendly Interface: Intuitive dashboard for managing deposits and monitoring performance

Key Features

  • Yield Scanning: Automatically scans multiple DeFi protocols to find the best yield opportunities
  • Risk Assessment Engine: Evaluates protocols based on multiple risk factors with a comprehensive scoring system
  • Automated Allocation: Optimizes fund allocation based on yield and user's risk tolerance
  • User-friendly Dashboard: Interactive visualizations of portfolio performance and risk metrics
  • Smart Contract Wallet: Secure management of funds through verified smart contracts

Technical Architecture

Smart Contracts

  • YieldAggregator: Core contract that manages deposits, withdrawals, and yield optimization
  • RiskAssessment: Evaluates and scores protocol risks based on multiple factors
  • Protocol Adapters: Interface with specific DeFi protocols (Aave, Compound, Uniswap, etc.)

Frontend

  • React.js with TypeScript for type safety
  • Web3.js/ethers.js for blockchain interaction
  • Material-UI for responsive design
  • Recharts for data visualization

Backend (Optional)

  • Node.js with Express for API services
  • MongoDB for historical yield and risk data
  • Real-time analytics and notifications

Innovation & Impact

The DeFi Yield Aggregator introduces several innovations:

  1. Risk-Adjusted Yield: Most aggregators focus only on APY, but we optimize for risk-adjusted returns
  2. Protocol-Agnostic Design: Adapter pattern allows integration with any DeFi protocol
  3. User-Defined Risk Tolerance: Customizable risk parameters that respect user preferences
  4. Transparent Risk Assessment: Clear visualization of risk factors for informed decision-making

By making yield farming more accessible and transparent, we aim to accelerate DeFi adoption beyond the technical elite and help users maximize returns while managing risk effectively.

Future Roadmap

  • Cross-chain yield farming (Ethereum, Polygon, Arbitrum, etc.)
  • Advanced yield optimization strategies
  • Governance token and DAO for community management
  • Mobile application for on-the-go yield monitoring
  • Integration with additional DeFi protocols

Team

Our team combines expertise in blockchain development, financial risk management, and user interface design to create a powerful yet accessible DeFi application.


Built for BITS Blockchain Web 3.0 Hackathon, March 2025

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  • TypeScript 42.3%
  • Solidity 34.5%
  • JavaScript 22.6%
  • HTML 0.6%
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