ETHA Lend’s Discovery Algorithm — A Unique Approach to DeFi Yield Optimization

Chester Bella
Mar 24 · 4 min read

As DeFi grows, the need for sustainable yield optimization grows with it. Achieving that has proven to be increasingly difficult for the current DeFi landscape. In order to stimulate the maturation of DeFi and the addition of real-world use cases, it is highly important to untangle the many complexities that the current space holds. As people like to say — “simplicity is helluva incentive.”

Finding an elegant yield positive endeavor begins with understanding how ETHA Lend democratizes finance and offers sustainable returns at the same time. We would like to discuss more certain essential pieces of DeFi yield optimization and how they come together, first.

What do we mean by Yield optimization?

In very simple terms, yield optimization can be defined as leveraging data analytics and optimization techniques to maximize the performance and return on the asset supplied. Within the current landscape, this was initially motioned by DeFi yield aggregators that were curated for the purpose of maximizing returns at all costs.

While some DeFi yield aggregators target holistic platform services, the others are more focused on pooling to attract a larger retail audience. ETHA Lend fits well within the category that excels in adjustable parameter curation and governance. But it is key to remember that .

So, what is the difference between a DeFi yield aggregator and a yield optimizer?

Yield aggregators are generally platforms that consist of a variety of modules along with services and liquidity pool routing. Each protocol within this realm attempts to distinguish its features and services through different aspects such as liquidity improvement, platform cost reduction, UI upgrades, etc. Each protocol presents a concrete solution, but the need to earn higher yields in a simple and elegant manner remains unanswered.

Now consider the imminent problem of DeFi fragmentation — if the solutions that these protocols are attempting individually, come together as one force- imagine the revolution. You don’t really need to imagine because that prospect is now a reality with an evolved yield optimization protocol — ETHA Lend. The emergence of ETHA Lend shall ensure cost-efficient movement of assets into the DeFi lending market, at a later stage across multiple networks.

Unlike comparable yield aggregators that may hold a user’s funds in order to offer a higher return based on specific strategies, ETHA Lend does not pool your funds in a single, smart contract wallet, thereby allowing you to have custody of your assets at all times. ETHA Lend hands over all the control to the user, and you shall be able to trigger the rebalancing, which then is further taken care of by our highly intelligent discovery algorithm.

The Discovery Algorithm

Yes, optimal yields are necessary for the current DeFi market participants. Still, sustainable returns that can be relied upon in the long run are much more desirable and effective.

Our vision of redefining the present DeFi terrain relies heavily on ETHA Lend’s unique discovery algorithm. Supplement that with an elegant yet simple interface, upgraded and highly innovative features including credit delegation — we hold the answer to incredible yield optimization along with helping users realize a more flexible approach to financial management.

Thanks to ETHA Lend’s integration with Chainlink Fast Gas Price Feed, our discovery algorithm is now revolutionary. It is able to fetch the current gas prices with the best calculation on routing and splitting the user’s supplied asset across protocols within the ecosystem. In its present form, ETHA Lend can factor in the volatility of assets present and past yields (currently for a span of 30 days), amount of asset supplied, the latest gas cost, and budget of the asset provided to determine the most optimal asset allocation. This is a highly intuitive and financially reasonable way to predict the market and adjust accordingly. ETHA Lend also introduces native Gas tokens for users to save on Gas fees when it is at the lowest, thus cutting dramatically on transaction costs by up to 52% when compared to other platforms.

Moreover, you can now overcome the frustrating lock-up periods which exist in almost all present projects, allowing you to withdraw assets without any delay. You can also redeem your interests in real-time, making your interactions with the protocol phenomenally time and cost-efficient.

Community

With the recent back-to-back over subscriptions on ETHA IDO, IEO auctions, and ETHA token listings, we have witnessed the true power of a community joining in on this vision to drive away from the “intimidating” from DeFi, replacing it with elegance and accessibility. We look forward to rebuilding the landscape of yield optimization piece by piece along with our community members. Come say hi!

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ETHA

A protocol-agnostic yield optimizer for the DeFi ecosystem