How does SureYield generate yields?

Capitalizing on the fees generated by Uniswap V3 Concentrated Liquidity Positions

It all comes down to a very common terminology in DeFi called “Yield Farming”.

What is Yield Farming?

Simply put, it is a way investors can make money by depositing funds (tokens) into a DeFi liquidity pool. By doing so they “provide liquidity” which entitles them to earn a certain APY (annual percentage yield) based on the swapping/trading fees happening in the pool.

This practice, specially with Uniswap V3 concentrated Liquidity positions, can be very rewarding but it also comes with high risks, and requires a lot of monitoring and manual interactions.

The Mechanics behind SureYield AI Managed Liquidity Positions

This is where SureYield shines! The protocol is completely autonomous and manages the liquidity positions 24/7. This makes it exponentially more time efficient and reactive compared to a manual approach.

Users simply deposit USDC into the SureYield app, and the protocol automatically allocates the funds into Blue Chip Uniswap V3 pairs such as ETH/USDC and wBTC/USDC. SureYield's proprietary AI handles these positions, optimizing gains while simultaneously mitigating risks. This transforms liquidity providing into a more user-friendly and profitable experience.

What are the 3 important factors influencing the fees earned?

  1. Trading Volume on the Pair: Fees earned are significantly impacted by the trading activity surrounding the chosen Uniswap V3 pair. Higher trading volumes suggest more frequent trading actions, leading to increased fee generation and, consequently, enhanced rewards for liquidity providers.

  2. Volatility of the Pair: Volatility, often associated with risk, can benefit liquidity providers. Pairs experiencing higher volatility witness more price adjustments, potentially leading to elevated transaction fees as traders realign their positions, thus boosting the fees.

  3. AI-Managed Liquidity Positions: A distinctive feature of SureYield is the advanced AI system tasked with managing and optimizing liquidity positions. This AI continuously analyzes market data, adjusts staking strategies in real-time, and optimizes USDC deployment based on prevailing market conditions. The AI's ability to adeptly navigate the market and adjust liquidity positions (up to several hundred times a day) ensures that deposited assets are optimally placed to maximize returns.

These fees being redistributed are proportionate to the user's share in the pool, offering a transparent and equitable distribution based on deposited amounts.

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