Strategy & Preferences

1

Strategy Options

Strategies in Aegis represent pre-defined risk/reward profiles. They determine the universe of eligible instruments and the thresholds for risk tolerance.

Conservative (Current Standard)

• Objective: Capital preservation and stable yield accumulation.

• Instrument Selection: Focuses on blue-chip DeFi protocols with high liquidity and proven track records (e.g., Aave, Morpho).

• Asset Exposure: Primarily restricted to USD-pegged or highly correlated assets to minimize impermanent loss and volatility.

• Risk Tolerance: Low. The system reacts aggressively to negative market signals or liquidity crunches.

Future Strategies (Balanced / Aggressive)

Note: These strategies are currently in development or alpha testing.

• Balanced: May include a wider range of assets and moderately leveraged positions.

• Aggressive: Targets maximum APY, potentially utilizing newer protocols, lower liquidity pools, or complex looping strategies with higher volatility tolerance.

Disabled

Users may choose to Disable automation. In this state, the AutoFi Agents will cease all rebalancing and position entry activities. Existing positions may be closed or left static depending on the specific deactivation flow selected.

2

Preferences (Blacklisting)

While the Strategy defines the approach, Preferences allow users to define the boundaries.

The Blacklist Mechanism

By default, all protocols integrated into Aegis are "Whitelisted" for the selected strategy. Users can customize this by explicitly adding protocols to a Blacklist.

• Function: If a user blacklists a specific protocol (e.g., "I do not want exposure to Protocol X"), the AutoFi Agent is strictly prohibited from opening any new positions in that protocol, regardless of how attractive the APY might be.

• Use Case: This feature empowers users to align the system with their personal risk assessments or external research.

3

Instruments

In the context of Aegis strategies, an Instrument refers to a specific yield-generating opportunity within a protocol.

• Example: "Morpho USDC Lending Vault" is one Instrument. "Aave v3 USDC Supply" is another.

• Data Model: Each Instrument possesses dynamic properties such as Real-time APY, Total Value Locked (TVL), Liquidity Utilization, and a computed Risk Score.

The AutoFi Agent's core loop involves evaluating all available Instruments that fit the user's Strategy and are not Blacklisted, then allocating capital to the most optimal choice.