Strategy Details
Overview
The AI Vault employs automated strategies to optimize yields across Sui's DeFi ecosystem, focusing on lending protocol opportunities with intelligent leverage management.
Core Strategy
Cross-Protocol Optimization
The vault allocates capital across multiple lending protocols:
- Suilend: Sui's leading lending platform
- Navi Protocol: Advanced money market protocol
- Dynamic Allocation: AI continuously optimizes based on APY and risk metrics
Leverage Strategy
Amplifies yields through strategic borrowing:
- Looping Mechanism: Recursive supply and borrow to increase exposure
- Target Leverage: 2.5x - 3.0x for optimal risk/reward
- Maximum Cap: 3.3x hard limit for safety
- Automatic Adjustment: Reduces leverage during market volatility
Liquid Staking Integration
Automatically converts between SUI and LST when beneficial:
- Captures staking rewards plus lending yields
- Optimizes collateral efficiency
- Maintains flexibility for market conditions
Execution
Daily Operations
- Compounding: Rewards harvested and reinvested daily
- Rebalancing: Positions adjusted when APY differentials exceed thresholds
- Risk Monitoring: Continuous health factor tracking
Whitelisted Approach
- Only uses established, audited protocols
- Minimum TVL requirements for pool inclusion
- Avoids experimental or high-risk strategies
Performance Optimization
The AI system optimizes for:
- Maximum sustainable yield
- Capital efficiency
- Risk-adjusted returns
- Transaction cost minimization
Future Development
Strategy enhancements are continuously developed and deployed, including:
- Additional protocol integrations
- Advanced yield strategies
- Improved risk management
- Community-requested features
For technical implementation details, see Technical Architecture. For risk considerations, see Risk Management.