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Smart Allocation

Smart Allocation is a one-click portfolio builder that suggests a diversified set of 3 vaults based on your risk tolerance.


Allocation profiles

ProfileStrategyVault selectionWeight balance
ConservativeCapital preservation firstPicks the 3 lowest-risk vaults75% safety, 25% APY
BalancedBest risk-adjusted APYSorts by risk-adjusted return, picks top 350% safety, 50% APY
AggressiveMaximum yieldPicks the 3 highest-APY vaults20% safety, 80% APY

How allocations are built

flowchart TD
A[All vaults] --> B[Build pool: redeemable + positive APY]
B --> C[3-tier stablecoin fallback]
C --> D[Deduplicate by token+protocol+chain]
D --> E[Sort by profile strategy]
E --> F[Pick top 3 vaults]
F --> G[Compute weights based on safety/APY balance]

Pool building (3-tier fallback)

To guarantee Smart Allocation never shows 0% APY for any profile:

  1. Tier 1: Stablecoins passing the anomaly filter (APY < 60%)
  2. Tier 2: All stablecoins with positive APY (relaxes anomaly check)
  3. Tier 3: Any redeemable vault with positive APY (broadest fallback)

Deduplication

To avoid recommending the same vault twice, vaults are deduplicated using:

key = token_symbol + "|" + protocol_name + "|" + chain_id

Weight computation

Once 3 vaults are selected, allocation weights are computed dynamically:

weight[i] = safeShare[i] × safeFactor + apyShare[i] × apyFactor
  • safeShare — inverse risk score (safer vaults get more weight)
  • apyShare — proportional to 30-day APY
  • safeFactor — 0.75 for Conservative, 0.50 for Balanced, 0.20 for Aggressive

This means Conservative allocates most capital to the safest vault, while Aggressive concentrates on the highest-yielding one.


Anomaly filtering

Smart Allocation excludes high-risk stablecoins — stablecoin vaults with APY above 20% are hidden from all suggestions. This prevents "too good to be true" pools (e.g. USD1 with 40%+ APY) from entering the allocation.

Stablecoins are detected via both LI.FI tags and a 40+ symbol allowlist including USDC, USDT, DAI, FRAX, GHO, crvUSD, and more.


Using Smart Allocation

  1. Go to the Discover tab
  2. The Smart Allocation section shows three profile cards at the top
  3. Click a profile to see the suggested vaults with projected yearly earnings
  4. Enter your investment amount
  5. Click to deposit — the modal opens pre-filled with the correct per-vault amount

Smart Allocation is a suggestion — you always choose which vaults to deposit into.