What is a Yield Optimizer?

By Kromatika | Kromatika Education | 8 Apr 2022

A Yield Optimizer is a decentralized protocol or smart contract that has been developed and optimized to acquire the greatest possible yields across several decentralized finance platforms. Their goal is to completely automate the operation of these platforms, as well as the claim and reinvestment of interest earned. They will usually save you a significant amount of time and money in exchange for a share of the fees. These protocols use algorithms to evaluate the market for the best interest possibilities and reinvest your profits numerous times a day to provide you with the best potential return on investment. You receive a share of the exchange fee and the liquidity provider fee when you give liquidity to a pool on PancakeSwap, for example. You'll also get a liquidity provider token for the pool to which you've contributed liquidity. Staking, lending, farming, and other DeFi methods that enable you to produce passive returns on your tokens can all be used to make them function. This way, you'll be able to keep adding to the quantity of cryptocurrency in your wallet without having to manage it.

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