Auto-Deployment

Overview

Auto-deployment is the process by which Idle Yield Router moves idle capital to yield-generating protocols. This happens automatically, requiring no user action.

Deployment Flow

Step 1: Idle Detection

Capital is considered idle when:

Lend order placed but not matched
Vault has excess cash buffer
Position matured, awaiting re-deployment
Order cancelled, funds pending return

Step 2: Delay Period

Capital waits in holding before deployment:

Scenario	Delay	Reason
New lend order	5 minutes	Allow time for quick matches
Vault buffer	1 hour	Absorb normal withdrawal flow
Post-maturity	5 minutes	Allow for auto-rollover

Why the delay? Deploying and recalling has overhead. Brief delays prevent unnecessary churn for capital that matches quickly.

Step 3: Protocol Selection

Idle Yield Router selects the optimal protocol:

Available Protocols:
├── Aave V3:     3.5% APY, $50M available
├── Compound V3: 3.2% APY, $30M available
├── DSR:         4.0% APY, $100M available
└── Spark:       3.8% APY, $25M available

Selection Logic:
1. Filter: All meet liquidity requirements ✓
2. Filter: All meet audit requirements ✓
3. Sort by yield: DSR (4.0%) > Spark (3.8%) > Aave (3.5%) > Compound (3.2%)
4. Select: DSR (highest yield)

Result: Deploy to DSR at 4.0% APY

Step 4: Deployment Execution

Capital is deposited to the selected protocol:

// Simplified deployment flow
async function deployIdleCapital(amount: bigint, user: address) {
  // Select best protocol
  const protocol = await yieldRouter.selectProtocol(amount);

  // Deposit to protocol
  const receipt = await protocol.deposit(amount);

  // Track deployment
  await yieldRouter.recordDeployment({
    user,
    amount,
    protocol: protocol.address,
    receipt
  });
}

Protocol Selection Algorithm

Scoring Factors

Factor	Weight	Description
Current APY	50%	Higher yield preferred
Available Liquidity	25%	Must support instant recall
Protocol Health	15%	Utilization, reserves
Diversification	10%	Avoid over-concentration

Example Scoring

Deploying: $100,000 USDC

Protocol Scores:
┌──────────┬───────┬───────────┬────────┬───────┬─────────┐
│ Protocol │ APY   │ Liquidity │ Health │ Divers│ TOTAL   │
├──────────┼───────┼───────────┼────────┼───────┼─────────┤
│ DSR      │ 50    │ 25        │ 15     │ 8     │ 98      │
│ Aave     │ 43    │ 25        │ 14     │ 10    │ 92      │
│ Spark    │ 47    │ 22        │ 13     │ 6     │ 88      │
│ Compound │ 40    │ 23        │ 12     │ 10    │ 85      │
└──────────┴───────┴───────────┴────────┴───────┴─────────┘

Winner: DSR (score 98)

Diversification Rules

To avoid concentration risk:

Rule	Limit
Max single protocol	60% of user’s idle capital
Max protocol utilization	No deployment if >90% utilized
Min protocols for large amounts	>$500k splits across 2+

Deployment Monitoring

Real-Time Tracking

Dashboard shows deployment status:

┌─────────────────────────────────────────────────────────┐
│                 Idle Yield Router Status                     │
├─────────────────────────────────────────────────────────┤
│ Idle Capital: $50,000                                   │
│                                                         │
│ Deployed:                                               │
│   DSR:        $30,000 (60%) @ 4.0% APY                 │
│   Aave:       $20,000 (40%) @ 3.5% APY                 │
│                                                         │
│ Blended Yield: 3.8% APY                                │
│ Daily Earnings: ~$5.21                                  │
│ Total Earned: $127.50                                   │
│                                                         │
│ Status: ● Active                                        │
└─────────────────────────────────────────────────────────┘

Deployment Events

Track all deployment activity:

Timestamp	Action	Amount	Protocol	APY
Mar 15 14:32	Deploy	$25,000	DSR	4.0%
Mar 15 09:15	Recall	$10,000	Aave	3.5%
Mar 14 16:45	Deploy	$10,000	Aave	3.5%
Mar 14 11:20	Deploy	$15,000	DSR	4.0%

Yield Accrual

How Yield Accumulates

Yield accrues continuously:

Time: T+0 (deployment)
  Principal: $10,000
  Protocol: DSR @ 4.0% APY

Time: T+1 day
  Value: $10,001.10 (daily yield)

Time: T+7 days
  Value: $10,007.67 (week of yield)

Time: T+30 days
  Value: $10,032.88 (month of yield)

Claiming Yield

Yield is automatically claimed when:

Capital is recalled for order matching
You manually withdraw from order book
Position matures

No separate claim action needed.

Gas Optimization

Batch Deployments

Multiple users’ capital batched together:

Individual Deployments:
  User A: $10,000 → Aave (1 tx)
  User B: $15,000 → Aave (1 tx)
  User C: $25,000 → Aave (1 tx)
  Total: 3 transactions

Batched Deployment:
  Users A+B+C: $50,000 → Aave (1 tx)
  Total: 1 transaction, 3x gas savings

Timing Optimization

Deployments scheduled during low-gas periods when possible:

Priority: Order matching always takes precedence
Flexibility: Deployment timing flexible within delay window
Monitoring: Gas price checked before deployment

Edge Cases

Protocol Rate Changes

If a protocol’s rate drops significantly:

Monitor detects rate change
If better option available, rebalance triggered
Capital moved to higher-yield protocol
Rebalancing cost weighed against yield improvement

Protocol Incidents

If a deployed protocol has an incident:

Immediate pause of new deployments
Recall of existing capital (if possible)
Fallback to remaining protocols
User notification

Insufficient Liquidity

If deployment amount exceeds protocol capacity:

Deploy maximum available
Remainder stays in holding or splits to other protocol
Continue monitoring for capacity

FAQs

Can I prevent my capital from being deployed?

Yes. Disable Idle Yield Router in your settings. Your capital will remain idle in the order book earning 0%.

What if I want to use a specific protocol?

The protocol manages all Idle Yield Router parameters, optimized for safety and yield. Individual users use protocol defaults.

Is deployed capital still available for matching?

Yes, absolutely. Deployed capital is recalled instantly when your order matches. The deployment is transparent to the matching process.

How often does rebalancing happen?

Only when yield differential justifies the cost (typically >50bps difference sustained for 24+ hours).

Capital Recall

Learn how capital is instantly recalled for order matching

Getting Started

Products

User Guides

Resources

Overview

Deployment Flow

Step 1: Idle Detection

Step 2: Delay Period

Step 3: Protocol Selection

Step 4: Deployment Execution

Protocol Selection Algorithm

Scoring Factors

Example Scoring

Diversification Rules

Deployment Monitoring

Real-Time Tracking

Deployment Events

Yield Accrual

How Yield Accumulates

Claiming Yield

Gas Optimization

Batch Deployments

Timing Optimization

Edge Cases

Protocol Rate Changes

Protocol Incidents

Insufficient Liquidity

FAQs

Capital Recall

​Overview

​Deployment Flow

​Step 1: Idle Detection

​Step 2: Delay Period

​Step 3: Protocol Selection

​Step 4: Deployment Execution

​Protocol Selection Algorithm

​Scoring Factors

​Example Scoring

​Diversification Rules

​Deployment Monitoring

​Real-Time Tracking

​Deployment Events

​Yield Accrual

​How Yield Accumulates

​Claiming Yield

​Gas Optimization

​Batch Deployments

​Timing Optimization

​Edge Cases

​Protocol Rate Changes

​Protocol Incidents

​Insufficient Liquidity

​FAQs

Capital Recall

Overview

Deployment Flow

Step 1: Idle Detection

Step 2: Delay Period

Step 3: Protocol Selection

Step 4: Deployment Execution

Protocol Selection Algorithm

Scoring Factors

Example Scoring

Diversification Rules

Deployment Monitoring

Real-Time Tracking

Deployment Events

Yield Accrual

How Yield Accumulates

Claiming Yield

Gas Optimization

Batch Deployments

Timing Optimization

Edge Cases

Protocol Rate Changes

Protocol Incidents

Insufficient Liquidity

FAQs