Abstract

AMMs (Automated Market Makers) facilitate the permissionless trade of assets through various liquidity pools. AMMs are undoubtedly a core pillar of DeFi (decentralized finance). In 2021, Curve Finance alone had around 69.7 billion dollars of volume across their DEX (decentralized exchange). To create and maintain liquidity, LPs (liquidity providers) contribute to the volume of assets in a liquidity pool and are often incentivized based on the volume they control. However, an LP is often faced with the challenges of searching for the best yield opportunities for their liquidity, strategies that sustain reasonable risk-to-reward and cost-to-reward ratios, and overall asset management, which is often addressed by using a vault. A vault is an automated strategy to maximize the yield of deposited assets. In these docs, we describe Kallisto Finance, a solution to maximize yield, dynamically chase APY on Curve, and reimagine DeFi volume.