How It Works
Agent Strategy
ARMA employs a sophisticated optimization system that maximizes stablecoin yields through continuous monitoring and automated rebalancing. The agent analyzes real-time lending rates across protocols while considering total APR, transaction costs, and optimal timing for position changes. This comprehensive approach ensures each automated decision contributes to maximizing your returns while maintaining efficiency.
APR Optimization
The yield optimization operates through three integrated mechanisms. The agent performs real-time rate analysis across all supported protocols, standardizing rates and accounting for supply/demand dynamics to enable accurate comparisons. This is coupled with smart rebalancing logic that continuously evaluates opportunities and executes moves only when profitable after considering all associated costs.
The integration with audited protocols - Ionic, Layerbank, and Ironclad - enables automated lending interactions and reward token management. Based on extensive backtesting, this sophisticated optimization approach has demonstrated up to 2x yield enhancement compared to traditional static positions.
Based on backtesting, this ARMA demonstrated up to 2x yield enhancement through agent management.
Auto-compounding Mechanism
To maximize yield generation, ARMA implements a smart auto-compounding strategy. The agent automatically claims and reinvests accrued yields, converting all reward tokens back to your original stablecoin. The compounding frequency is dynamically optimized based on your position size, current APR, and transaction costs, ensuring maximum efficiency while minimizing unnecessary operations.
Token Swapping Logic
ARMA supports USDC deposits at launch, but utilizes both USDC and USDT to access the broadest range of yield opportunities. The agent’s analysis determines when yield differentials justify token swaps, executing these conversions through integrated DEX protocols for maximum efficiency. Throughout all operations, ARMA maintains proper accounting to ensure you can always withdraw in your original deposit token, providing both flexibility and predictability.