Back to Basics: Find and Maximize DeFi Vault Strategies
The DeFi ecosystem is growing at a dizzying pace. Over the past year, the total value locked (TVL) of DeFi projects has grown 10 fold to over $50B USD across hundreds of DeFi projects. Even the most advanced traders are challenged to keep up with market developments. If you’re just getting started, the learning curve is overwhelming to say the least.
“Hey Google What is DeFi??”
Try to think back to the very first time you heard of decentralized finance. Can you remember how you approached educating yourself on the ins and out of this brave new world? Even if you have friends or colleagues who happen to be more knowledgeable than you, it’s hard to imagine anyone researching an emerging new field without a consumer friendly search engine.
There’s a reason most of us intuitively think of that one search engine that starts with a G. Not too many people would care to “DuckDuckGo it”. At the turn of the century, several search engines were competing for consumer attention. The one that disrupted search offered consumer friendly simplicity rooted in fundamental social signals of relevance (search friendly content that humans find useful and therefore link to). The Google search index would quickly become synonymous with search.
Where’s the “DeFi Vault Index”?
Think about all the data points a new investor needs to consider when navigating the DeFi ecosystem. You’ve got decentralized exchanges, lending platforms, and several commercially viable CeFi alternatives that can provide passive income for yield farmers. Over the past year, many DeFi projects have presented interesting ways of optimizing and maximizing vault strategies. Figuring out what works can easily spiral into a full time job. Although blockchain data is publicly available, any two tools rarely agree on forecasts measures as APY (average percentage yield). Over time, yields are bound to fluctuate as a function of TVL, market capitalization, and trade volume. Still, there is no standard vault index that enables yield farmers to find and maximize yields. Such a vault index would aggregate measurable performance across vaults and standardize that data to deliver consumer friendly access.
Where Are the Vault Aggregators?
The future of DeFi is about scaling and building out a robust ecosystem that will eclipse the brute force competition from any single entity. While a handful of teams have made an effort to rank, rate, and measure the performance of existing DeFi projects — they all rely heavily on manual (and often inaccurate) data curation. What the yield farming community still lacks is a standardized toolset that leverages decentralized principles to measure, share, and navigate the rapidly evolving DeFi ecosystem.
Focusing on vault strategies, yield farmers are essentially flying blind. While DEX aggregation tools (such as 1Inch) deliver the lowest cryptocurrency conversion rates for traders, yield farmers still rely on inefficient methods to identify the optimal APY. As vault strategies proliferate, the DeFi community desperately needs a new class of tools specifically designed for yield farming. The Revault project’s mission is simple: to enable anyone to find and maximize DeFi vault strategies.
Revault does for the DeFi community what Google does for the consumer web.
