New Optimism “Top Vaults” for Optimised Beefy & Yearn Yield Farming

What’s the scoop?

Alluo is now live on the Optimism🔴 chain 🔥🚀

We’re super-excited to announce we’re now live on the Optimism chain, bringing the benefits of DeFi on autopilot to a whole new level. You can now enjoy Alluo’s unique set-and-forget DeFi and Fintech-like user experience, on the super-chain Optimism: get the security of Ethereum mainnet at a fraction of the price and lightning-fast speeds.

And one more thing: Our new Top Vaults let you automate Beefy and Yearn strategies so you’re always in the best pool for your chosen asset 🤖.

Hey I’m new here, who are you again?

Alluo is a DAO, a DeFi project that’s making complex financial services easy for everyone. Built on web3 and DeFi smart contracts, Alluo provides access to personal finance tools, great rates, and non-custodial access to your funds. We remove the complexity of DeFi while delivering a seamless user experience and give access to complex DeFi strategies to all.

If you want to find out more about what we’re about, take a look here.

Now, we’re taking this convenience even further.

What’s actually going on then?

First of all, fear not all you existing fans, we’re still on Polygon and Ethereum mainnet. But in deploying on Optimism, we’ve done a few things:

1. 🔴 Redeployed the Alluo decentralised web app (dApp) on Optimism
2. 💸 Deployed the yield generation part of the Alluo Liquidity Direction Protocol and Exchange on Optimism
3. 🗄️ Launched our NEW TOP VAULTS— Beefy and Yearn optimised farms

This launch on Optimism enables us to bring more liquidity to Optimism and our unique DeFi on autopilot, Fintech-like user experience.

🗄️ Top Vault, who the what now?

These farms available on the Alluo Pro dApp allow you to optimise Beefy and Yearn strategies so you’re always in the best pool for the chosen asset.

Choose your aggregator and asset, deposit funds, and let the protocol manage from there. It automatically creates LPs, stakes in the top farm, and moves funds to maintain your position in the top farm if this changes. Rates are variable, and benefits are auto-compounded.

These strategies are built on top of highly respected and used strategies from Beefy.com and Yearn.finance. So they’re clearly great for Beefy and Yearn lovers, but also for those who want to optimise their positions in tried and tested strategies automatically.

The deets

For Beefy, we only whitelist farms with at least $1m of liquidity, have a Beefy safety score of 8 or more and a steady peg of $0.99–$1.01. The higher the Beefy Safety Score, the safer your investment.

The Safety Score is computed by Beefy’s developers when assessing a vault, and the team puts a lot of effort into checking vaults added. Each vault also has a panic facility to pause activity to protect user funds at short notice if the need arises, or even suspicious activity is identified. The Safety Score ranks a vault from 0 to 10, worst to best.

For Yearn, we only whitelist farms with at least $1m of liquidity, have an average Risk score of 3.5 or more and a steady peg of $0.99-$1.01. The higher the Yearn Risk score, the safer your investment.

Below is an example set of risk scores for the 0xFaee21D0f0Af88EE72BB6d68E54a90E6EC2616de USDT farm

No score can capture risk levels perfectly but aims to provide another layer of data when making investment decisions.

The protocol continuously evaluates different strategies. However, for a new strategy to replace the current Top Vault strategy, it must satisfy two conditions. First, it must comply with the whitelist criteria. Second, its yield must be high enough to outperform the existing Top Vault strategy over a fortnight, considering all associated fees.

To illustrate, let’s assume the existing Top Vault strategy yields 20% APY (Annual Percentage Yield) and there’s a 0.2% fee to enter and exit strategies. In this case, a potential new Top Vault strategy would need to yield roughly 25% APY or higher. This increase (+5%) equates to about 0.1% APY per week, so is necessary to cover the costs of transition (0.2%) within a two-week timeframe.

The 0.2% comes from trading fees and slippage linked to exiting and entering liquidity pools on protocols such as Curve, Velodrome etc. While the actual entry and exit fees could be lower, 0.2% serves as a suitable guide.

The Best of Beefy and Yearn

These are optimised farms for Beefy and Yearn investments and bring a range of options that cater to both Beefy and Yearn lovers or regular Defi fans alike.

Here’s what you can look forward to (rates may change over time):

Beefy Strategies:

1. Beefy Top Vault USD: With a prospective APY of 22%, this vault provides optimised earnings on your USD stablecoins (DAI, USDC, USDT).
2. Beefy Top Vault ETH: This vault offers an APY of 6.7%, giving you optimised earnings on your ETH (wETH).
3. Beefy Top 3 Vault USD: Currently at an APY of 14%, this vault diversifies your USD investments across the top 3 Beefy farms.
4. Beefy Top 3 Vault ETH: Offering a 7% APY, this strategy diversifies your ETH investments across the top 3 Beefy farms.

Yearn Strategies:

Remember the yearn Vaults in Top Vault are receiving an Optimism Boost. Our Top Vault strategies claim these additional rewards, convert to the underlying LP and re-stake to maximise benefits!

1. Yearn Top Vault USD: This vault offers a superb 26.5%+ APY, giving you optimised earnings on your USD stablecoins (DAI, USDC, USDT).
2. Yearn Top Vault ETH: Currently at 12% APY, this vault provides optimised earnings on your ETH (wETH).
3. Yearn Top 3 Vault USD: This vault offers an estimated 26.5% APY, diversifying your USD investments across the top 3 Yearn farms.

Bonus!

Yearn vaults on Alluo are the most cost-effective way to use Yearn and even better, Yearn is boosting its rewards by rewarding depositors with additional Optimism tokens! Alluo will auto-compound these to significantly further increase rewards. With these features, Yearn Vaults on Alluo will offer the best blue-chip rates on Optimism.

How to use Top Vault:

Getting in on the action couldn’t be easier!

1. Connect your wallet to the Alluo Pro web app.
2. Select the strategy you want to deposit in and approve your deposit asset.
3. From there, the protocol automatically creates LPs, stakes in the top vault, and moves funds to maintain your position in the top vault if a better strategy emerges.
4. For the top 3 Vaults it’s the same single-sided asset deposit and the protocol creates LPs for the top 3 performing vaults at the chosen aggregator (Beefy/Yearn). Your deposit is split equally across each vault.

Conclusion:

We’re here to make sure anyone can enjoy the benefits of DeFi. There are no lockups, no minimum deposits, and it’s free to withdraw anytime. Whether you’re an experienced DeFi enthusiast or a retail user wanting to access DeFi features with a Fintech-like user experience, Alluo is DeFi on autopilot, for everyone.

So, what are you waiting for? Get the benefits of fully automated Beefy and Yield yield farming with Alluo on Optimism🔴.

Visit https://app.alluo.finance to try it now for yourself. For more information or to ask our team questions, join our Discord at https://discord.gg/alluo.