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MiloTruck / aggregator-risk-idea.md
Created July 11, 2024 14:51 — forked from 0xngmi/aggregator-risk-idea.md
Aggregator with customized user risk profiles

Background

In the current market, yield farmers have only 2 options: either deposit into a yield aggregator that completely manages their money for them, making all the risk assessments and moving their money between protocols, or just run everything on their own, moving their money continuously between protocols, at most using an auto-compounder on a single vault for some automation.

However, not everyone has the same risk profile and thus fully managed aggregators won't fit everyone, while on the other hand there's a big market of people that don't like constantly having to manage their positions and shuffle their funds. These two options are the 2 extremes, either fully managed or DYI.

Because of this I believe there's a market for users that want some automation while being able to set their own risk profile.

Idea

I propose a protocol where users deposit funds along with policies on how those funds can be deployed, and then the protocol optimizes their position within those boundaries and automat