Boosted Liquidity Pools

Adapter vaults will act as strategy manager for liquidity pools of decentralized exchanges like Balancer or Curve. Idle liquidity is shifted to asset-specific Adapter vaults that use adapters and strategies to generate additional yield. Adapters can integrate to lending protocols, other (ERC-4626) vaults, or staking contracts to generate additional yield. The nature of lending protocols makes the returns on lent assets inversely proportional to the availability of capital in the respective lending markets. In the presence of a surplus of available capital, interest rates on lending protocols decrease. The deployment of assets by different DeFi protocols leads to interest rate imbalances that come as a result of different utilization rates. Adapter vaults can react to interest rate changes in real time by strategy adjustments to ensure a Vault depositor always obtains the highest possible yield on their assets.