Jun 2
Development updates 30/5–6/6: ERC-4626 compatible Yield aggregator, Limit Order contract and API on Aurora Mainnet
Chai devs are in the progress of:
- Develop a Yield Aggregator compatible with ERC-4626 to maximize profit for liquidity providers, automatically.
- Release Limit Order contract and API on Aurora Mainnet.
- Continue to alpha testing Stable AMM and unified router Dynamic-Stable AMM.
Yield Aggregator
First, we would want to introduce to new users some definitions:
- ERC-4626 is a standard to optimize and unify the technical parameters of yield-bearing pools (also call vaults), providing a standard API for tokenized yield-bearing vaults that represent shares of a single underlying ERC-20 token. ERC-4626 in yield-bearing vaults will lower the integration effort and unlock access to yield, creating more consistent and robust implementation patterns.
- A Yield aggregator is a set of smart contracts that pool investors’ funds and invest them in an array of yield-producing products or services by interacting with their respective protocols. In essence, a yield aggregator can be deemed as a smart contract-based fund manager, whose investment strategies are pre-programmed and automatically executed.
Chai devs are developing a Yield aggregator compatible with ERC-4626 to maximize profit for liquidity providers, automatically. Yield aggregators have many benefits that help to drastically simplify the user experience:
- Yield farmers do not have to actively compose their own strategy, but they can make use of the strategists invented by other users, turning their investment strategy from an active mode to a more passive approach without the need for extensive knowledge about the underlying protocols. Chai is constantly in search of new strategies that better capture the current DeFi opportunities.
- Cross-protocol transactions are happening through a smart contract with capital shifts done automatically, removing the need for the user to transfer funds manually between protocols.
- Funds are pooled in a strategy contract with the gas fees socialized, resulting in fewer and thus lower interaction costs.
The composability of strategies allows the creation of endless possibilities, yet in every element and layer of the stack, there are potential risks that should be accounted for including liquidity risks, liquidation risks, and composability risks, … Chai will carefully assess all risks, in design algorithms to prevent and reduce them, and run the algorithms through multiple tests before introducing the Yield Aggregator to the users.
Limit Order contract and API on Aurora Mainnet
We are working closely with Aurora to release the Limit Order contract on Aurora Mainnet and Publish API and Documentation for Limit Order.
Also, we continue to alpha testing Stable AMM and unified router Dynamic-Stable AMM, perfecting the user experience.
Chai will provide more detailed information in upcoming articles.
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