Algorithmic yield basket calculator based on risk tolerance.
The DeFi Yield Allocator helps the modern DeFi participant refine their capital deployment across the decentralized finance ecosystem. For the Fortress (Low Risk) strategy, our algorithm strictly filters the market for liquidity pools holding a proprietary Safety Score above 90/100.
This allocation focuses heavily on established protocols with billions in TVL and audited smart contracts, minimizing the chance of hacks. By utilizing this calculator, a user allocating $10,000 can visualize a projected monthly return of $27.83 based on current on-chain data.
Unlike static lists, this tool dynamically constructs a "Basket" of 5 unique assets. This essential step ensures portfolio distribution, reducing single-asset concentration risk. The engine cross-references real-time TVL (Total Value Locked) and audit history to ensure only the most safe opportunities are presented for your chosen risk profile.
While the projected 3.34% APY is attractive, every DeFi participant must understand the underlying mechanics. Yields in DeFi are generated through transaction fees and token incentives. High volatility in the underlying token price can lead to impermanent loss, which may offset yield generation. The Fortress approach attempts to lower this by filtering for assets with higher liquidity depth.
Data Sources: Yields and safety scores aggregated hourly via the DefiStar Indexer.
Disclaimer: This tool provides hypothetical portfolio constructions for educational purposes. It does not constitute investment advice. Terms of Service apply.