Yield Optimization

In ConsortiumAI, capital is never left idle.

Core Principle

Idle Capital Policy

Prohibited — All available capital must be productively deployed within risk bounds.

How It Works

When funds are not actively trading:

1. Protocol Scanning

Agents continuously scan lending protocols in real-time:

• Aave, Compound, and Solana-native protocols
• Liquidity pools with yield opportunities
• Staking options

2. Opportunity Evaluation

For each opportunity, agents evaluate:

Factor	Analysis
APY	Current and historical yield
Utilization	Protocol capacity usage
Liquidity Risk	Withdrawal availability
Protocol Risk	Smart contract security

3. Optimal Deployment

Capital is deployed to the highest-yielding opportunities that meet risk criteria.

4. Continuous Monitoring

• Rates are monitored continuously
• Withdrawals occur automatically when rates degrade
• Capital is reallocated to better opportunities

Auto-Compounding

Compounding Frequency

Hourly — Yield is auto-compounded at high frequency to maximize effective APY.

The Power of Compounding

Standard Yield (No Compounding):    10% APY
Daily Compounding:                  10.52% Effective APY
Hourly Compounding:                 10.54% Effective APY

With hourly compounding, you earn yield on your yield continuously.

Example Flow

Idle Capital Detected: 1000 USDC
       ↓
Protocol Scan: 5 lending pools identified
       ↓
Risk Analysis: 3 pools pass risk criteria
       ↓
APY Comparison:
  - Pool A: 8.2% APY (selected)
  - Pool B: 7.1% APY
  - Pool C: 6.8% APY
       ↓
Capital Deployed to Pool A
       ↓
Hourly: Compound rewards
       ↓
Continuous: Monitor for better rates

Risk-Bounded Yield

Yield optimization never compromises security:

• User risk parameters always respected
• Protocol health continuously monitored
• Instant withdrawal capability maintained
• No lock-up requirements beyond user preferences