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ai-powered-defi-yield-optimizer

README.md

AI-Powered DeFi Yield Optimizer for Aerodrome Finance

An AI-powered DeFi yield farming optimizer that helps users build personalized portfolio strategies across Aerodrome Finance pools on Base network.

🚀 Features

Core Functionality

  • Real-time Pool Data: Fetches live pool data from Quicknode's Aerodrome API
  • AI-Powered Optimization: Uses Claude AI for intelligent portfolio recommendations
  • Risk Assessment: Comprehensive 5-step quiz to determine user risk profile
  • Smart Allocation: Automated portfolio diversification with percentage allocations
  • Detailed Reasoning: AI-generated explanations for each pool recommendation

Pool Analysis

  • Multi-criteria: TVL, APR, and volume analysis
  • Pool Type Support: Stable pairs, volatile pairs, and concentrated liquidity pools
  • Token Verification: Integration with verified token lists for safety
  • Real-time Metrics: Live APR, TVL, and trading volume data

User Experience

  • 3-Step Workflow: Pool overview → Risk assessment → Strategy results
  • Interactive Quiz: Investment amount, risk tolerance, time horizon, and preferences
  • Visual Portfolio: Pie charts and detailed breakdowns of recommendations

🏗️ Architecture

System Overview

┌─────────────────┐    ┌──────────────────┐    ┌─────────────────┐
│   User Input    │    │   AI Processing  │    │  Pool Data API  │
│                 │    │                  │    │                 │
│ • Risk Quiz     │───▶│  Claude AI API   │◀───│ Quicknode API   │
│ • Preferences   │    │  • Analysis      │    │ • Live Pools    │
│ • Investment $  │    │  • Optimization  │    │ • Token Data    │
└─────────────────┘    │  • Reasoning     │    │ • Verification  │
                       └──────────────────┘    └─────────────────┘
                                │
                                ▼
                       ┌──────────────────┐
                       │ Optimized Strategy│
                       │                  │
                       │ • Pool Selection │
                       │ • Allocations    │
                       │ • Risk Scores    │
                       │ • Reasoning      │
                       └──────────────────┘

Component Architecture

├── app
│   ├── api
│   │   └── optimize              # Server-side API route for AI optimization
│   ├── globals.css               # Global styles and CSS variables
│   ├── layout.tsx                # Root layout with providers and metadata
│   └── page.tsx                  # Main orchestrator component for the 3-phase flow
├── components
│   ├── pools
│   │   ├── enhanced-pool-card.tsx    # Rich pool data display with metrics
│   │   └── pool-overview.tsx         # Pool grid with sorting and filtering
│   ├── quiz
│   │   └── risk-assessment-quiz.tsx  # Multi-step risk profiling interface
│   ├── strategy
│   │   └── strategy-results.tsx      # AI-generated strategy visualization
│   ├── theme-provider.tsx            # Theme context for dark/light mode
│   └── ui                           # Reusable UI components (shadcn/ui)
├── hooks
│   ├── use-mobile.tsx               # Responsive design hook
│   └── use-toast.ts                 # Toast notification system
├── lib
│   ├── ai-optimizer.ts              # Claude AI integration and prompt engineering
│   ├── api.ts                       # Aerodrome API client and data fetching
│   ├── mock-data.ts                 # Fallback data for demo mode
│   ├── optimizer.ts                 # Portfolio optimization orchestrator
│   └── utils.ts                     # Utility functions and formatting
├── types
│   ├── pool.ts                      # Pool data structures and API responses
│   ├── strategy.ts                  # Strategy and risk profile interfaces
│   └── token.ts                     # Token metadata and verification types

📋 Prerequisites

Required Accounts & APIs

  1. Anthropic Claude API:

  2. Quicknode Account:

    • Sign up at quicknode.com
    • Subscribe to Aerodrome API add-on
    • Get endpoint URL

🚀 Quick Start

1. Clone the Repository

git clone https://github.com/quiknode-labs/qn-guide-examples.git
cd qn-guide-examples/sample-dapps/ai-powered-defi-yield-optimizer

2. Install Dependencies

pnpm install
# or
npm install

3. Environment Configuration

cp .env.example .env

Edit .env:

# Required for AI optimization
ANTHROPIC_API_KEY=your_claude_api_key_here

# Optional for live data (falls back to demo data)
NEXT_PUBLIC_QUICKNODE_ENDPOINT=https://your-quicknode-endpoint.com/your-api-key/

4. Run Development Server

pnpm dev
# or
npm run dev

Visit http://localhost:3000 to see the application.

5. Production Build

pnpm build
pnpm start

🔧 Configuration Options

Environment Variables

Variable Required Description
ANTHROPIC_API_KEY Yes Claude AI API key for optimization
NEXT_PUBLIC_QUICKNODE_ENDPOINT Yes Quicknode Aerodrome API endpoint

API Endpoints

/api/optimize (POST)

Generates AI-powered portfolio optimization.

Request:

{
  pools: DetailedPool[],
  riskProfile: RiskProfile
}

Response:

{
  success: boolean,
  optimization: {
    recommendations: PoolRecommendation[],
    portfolioSummary: PortfolioMetrics
  },
  usedAI: boolean
}

🎯 Usage Guide

Step 1: Pool Overview

  • Browse real-time Aerodrome pools
  • Filter by pool type, tokens, or characteristics
  • Sort by TVL, APR, or volume
  • Click "Build My Strategy" to start

Step 2: Risk Assessment

Complete the 5-step questionnaire:

  1. Investment Amount: $1,000 - $100,000+
  2. Risk Tolerance: Conservative, Moderate, or Aggressive
  3. Time Horizon: Short (1-3mo), Medium (3-6mo), or Long (6mo+)
  4. Pool Preferences: Stable, Major tokens, Volatile, Concentrated liquidity
  5. Minimum TVL: $100K - $10M+ for liquidity requirements

Step 3: Strategy Results

View your personalized recommendations:

  • Portfolio Overview: Expected APR, risk score, diversification
  • Allocation Chart: Visual breakdown of recommended investments
  • Pool Details: Specific reasoning for each recommendation
  • Implementation Guide: Step-by-step instructions

Getting Help