Yield Optimization Models

Lenders on Trumnix benefit from AI-powered yield optimization, which reallocates funds across lending pools to maximize returns while adhering to individual risk tolerances.

Formula for Yield Maximization:

The Optimal Yield (OYOYOY) is computed using a predictive optimization model that analyzes lending pool metrics (LPLPLP) and market trends (MTMTMT):

OY=max⁡∑i=1n(Ri⋅Li−Ci)OY = \max \sum_{i=1}^{n} \left( R_i \cdot L_i - C_i \right)OY=maxi=1∑n​(Ri​⋅Li​−Ci​)

Where:

• RiR_iRi​: Return rate of pool iii.

• LiL_iLi​: Liquidity allocated to pool iii.

• CiC_iCi​: Cost of liquidity allocation (e.g., fees, gas costs).

• nnn: Total number of available pools.

Protocols:

1. Predictive Analysis Protocol: Utilizes historical data and AI forecasting to predict pool performance over the next TTT periods.

2. Reallocation Protocol: Triggers fund reallocation based on predicted yields and lender risk preferences.