Web3 Hackathon Project Outline: DeFi Yield Aggregator Platform

1. Project Overview

Project Name

YieldMax Protocol - A decentralized yield farming aggregator that automatically optimizes returns across multiple DeFi protocols

Tagline

"Maximize your DeFi yields with intelligent automation"

Problem Statement

DeFi users face several challenges:

• Complexity in managing multiple protocols

• Time-intensive manual yield farming optimization

• High gas fees when moving funds frequently

• Difficulty tracking performance across platforms

• Impermanent loss risks

Solution

YieldMax Protocol is an automated yield optimization platform that:

• Aggregates yields from multiple DeFi protocols (Compound, Aave, Yearn, etc.)

• Uses smart contracts to automatically reallocate funds to highest-yielding opportunities

• Provides single-click deployment with automated rebalancing

• Implements risk assessment algorithms

• Offers transparent fee structure and real-time analytics

2. Technical Architecture

Blockchain & Technology Stack

• Primary Chain: Ethereum (with Layer 2 support - Polygon, Arbitrum)

• Smart Contracts: Solidity

• Frontend: React.js with Web3.js/Ethers.js

• Backend: Node.js with Express

• Database: IPFS for decentralized storage, MongoDB for caching

• Price Feeds: Chainlink oracles

• Testing: Hardhat, Waffle

Core Components

Smart Contracts

1. Vault Contract: Main contract holding user funds

2. Strategy Contracts: Individual protocol interaction logic

3. Rebalancer Contract: Automated rebalancing logic

4. Fee Manager: Handles protocol fees and rewards

5. Risk Assessment: Evaluates protocol safety scores

Frontend Features

• Web3 wallet integration (MetaMask, WalletConnect)

• Real-time yield comparison dashboard

• Portfolio analytics and performance tracking

• Risk assessment visualization

• Transaction history and tax reporting tools

3. Key Features & Functionality

Core Features

• Multi-Protocol Integration: Compound, Aave, Yearn Finance, Curve

• Automated Rebalancing: Smart contract-based yield optimization

• Risk Management: Protocol safety scoring and diversification

• Gas Optimization: Batch transactions and Layer 2 integration

• Yield Prediction: ML-based yield forecasting algorithms

Advanced Features

• Liquidity Mining Rewards: Automatic claiming and compounding

• Flash Loan Arbitrage: Automated arbitrage opportunities

• Social Trading: Copy successful strategies from top performers

• DAO Governance: Token-based voting for protocol upgrades

• Cross-Chain Support: Multi-blockchain asset management

4. User Experience Flow

Onboarding

1. Connect Web3 wallet

2. Complete risk assessment questionnaire

3. Choose investment amount and risk tolerance

4. Select automated strategy or custom allocation

Daily Operations

1. Monitor performance through dashboard

2. Receive notifications for significant yield changes

3. Optional manual rebalancing or strategy adjustments

4. Track rewards and fees in real-time

Advanced Users

• Create custom strategies

• Set automated triggers and conditions

• Access API for programmatic trading

• Participate in governance voting

5. Tokenomics & Business Model

Native Token: YMAX

• Total Supply: 100,000,000 YMAX

• Distribution:

  • 40% - Liquidity Mining Rewards

  • 25% - Team & Advisors (vested)

  • 20% - Treasury/DAO

  • 15% - Initial Liquidity & Partnerships

Revenue Streams

1. Performance Fees: 2% of profits generated

2. Management Fees: 0.5% annual fee on assets under management

3. Premium Features: Advanced analytics and strategies

4. Partnership Fees: Revenue sharing with integrated protocols