Auto Diversify
"Auto Diversify" helps an investor automatically earn low-risk and high-return yields.
How does it work? We have developed powerful formulas that efficiently invest across multiple DeFi platforms, auto-compound, and rebalance regularly. All an investor needs to do is pick a token and deposit.
Overview
Structures
Single Asset
Single Asset
(No Belt)
Stablecoin
Deposit
BNB, BTC, ETH
CAKE
USDT, BUSD, DAI, USDC
Target Vaults
Target Strategy
Borrowing & Lending
Auto-compound
Staking
Auto-compound
Liquidity Providing & Farming
Auto-compound
Auto Diversify Strategy Details
Auto Diversify spreads deposits across multiple vaults, and directly into PancakeSwap and Dopple Finance as core platforms.
How it works:
Set base allocation of each target vault relative to its TVL and total TVL
Equally redistribute excess allocation above 50% in a single vault to the remaining targets
This makes sure we never allocate more than 50% to any vault
Take 20%* allocation from poor performers and distribute it to better performers; benchmark by APY relative to median
Rebalance if the current allocation is 5% more or less than the target allocation
*Auto Diversify options with 2 targets are will just be a 50/50 split until more targets are added.
How to deposit capital flows from Auto Diversify into the DeFi ecosystem:
Diversification Benefits and Risks
While deposits are diversified, it does not eliminate risks completely. This is because no investment, whether in DeFi or the physical world, is truly risk-free.
However, it should be noted that while the product diversifies across multiple target products, it does not necessarily diversify across wide-ranging platforms at the launch stage. Due to the limited availability of target products and development time, various deposit options are platform concentrated -- for instance, the stablecoin structure. Most single asset vaults end up with capital deposited within a few core products, such as Venus, Belt, and PancakeSwap; therefore, this is the nature of the ecosystem at this stage. Exploits typically happen at the smart contract level. Therefore, diversification at the target vault or core product level is a big step toward to reducing risks.
As the ecosystem develops, Auto Diversify's degree of diversification will improve with the addition of new target vaults.
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