> For the complete documentation index, see [llms.txt](https://docs.polystream.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.polystream.xyz/smart-contracts/strategy.md).

# Strategy

### **Purpose**

The **YieldOptimizer** ensures that users' deposits always generate the maximum possible returns by:

* Continuously comparing APYs (Annual Percentage Yields) across supported protocols.
* Automatically switching users' funds to the most profitable protocol at regular intervals.
* Reducing manual intervention, thus minimizing risk and enhancing efficiency.

### Key Contract and Responsibilities

#### [`YieldOptimizer.sol`](https://github.com/polystream-core/polystream-contracts/blob/main/src/Strategy/YieldOptimizer.sol)

* Manages asset allocation across lending protocols to achieve the highest possible returns.

***

**`optimizeYield()`**

Executes the yield optimization routine. Intended to run automatically via Chainlink Automation at each epoch's end.

**Operational Steps:**

* Retrieves the current active protocol’s APY.
* Iterates through all registered protocols to identify a protocol offering a higher APY.
* Executes fund withdrawal from the previously active protocol, if a better APY is identified.
* Sets the new protocol as active within the `ProtocolRegistry`.
* Immediately reinvests funds into the newly selected protocol.

**Events**

* **`OptimizedYield(oldProtocolId, newProtocolId, amount)`**:\
  Triggered whenever funds are moved to a new protocol for improved returns.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://docs.polystream.xyz/smart-contracts/strategy.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.