What is Amplifi?
Amplifi streamlines decentralized finance (DeFi) Yields into 1-click strategies. No gas, no fees, no hassle.
Amplifi is a decentralized savings app designed to help users earn passive yield on their crypto holdings. By leveraging DeFi liquidity layers—like decentralized exchanges (DEXs) and money markets—Amplifi offers automated yield farming with dynamic, AI-driven optimization.
With Amplifi, users can select a vault and deposit assets with 1-click.
Under the hood, Amplifi’s AI/ML engine allocates assets across multiple liquidity pools (& blockchain networks) based on the vault’s strategy and market conditions. These systems continuously monitor on-chain yield rates and rebalance positions as needed to optimize returns.
The Amplifi app also incorporates account abstraction, enabling gasless transactions and social logins (via Gmail, Facebook, etc.) to spin up crypto wallets seamlessly.
The ultimate goal is to dynamically aggregate and automate DeFi yields, providing a user-friendly front-end that caters to all users, from traditional to DeFi natives.
The Problem
Out of 560 million crypto holders, only 6 million engage with DeFi protocols on-chain.
This gap is mainly due to two key factors: (1) the complexity and steep learning curve of DeFi, and (2) the lack of trust in centralized (Web2) crypto platforms.
Let’s take a closer look at these challenges:
1. Shortcomings of Decentralized Platforms
DeFi introduces many new investment vehicles, but these methods are often complex. They require deep research, analysis, and constant monitoring of positions. This makes manual position management tiresome for users as they risk losing funds if they aren't paying close attention to their positions.
For example, here are some of the challenges faced by depositors of DEXs and money markets:
Furthermore, DeFi liquidity is fragmented which introduces more complexities to accessing cross-chain liquidity, including:
Bridging Assets: Moving assets between different blockchains requires bridging solutions, which can be complex and risky.
Excessive Fees: Transferring assets across different blockchains and platforms often involves swaps which incur fees. Each transfer incurs bridging and gas fees, which can add up and reduce overall returns.
Overchoice: The overwhelming number of available options can make it difficult to identify the best strategies, leading to analysis paralysis and suboptimal decision-making.
These challenges make it harder for users to effectively manage their assets and take full advantage of yield opportunities across multiple chains.
2. Shortcomings of Centralized Platforms
Centralized platforms like BlockFi and Celsius have attempted to offer easy access to DeFi yields but have retained too many traditional banking elements. While convenient, they have struggled with transparency, custodial risks, and poor risk management, leading to insolvency.
In March 2023, it was revealed that BlockFi had $227 million in uninsured funds at Silicon Valley Bank. BlockFi filed for Chapter 11 bankruptcy on November 28, with over 100,000 creditors.
Similarly, Celsius faced issues due to its risky lending practices. It relied on Prime Trust to store assets until June 2021, when Prime Trust expressed concern over Celsius's strategy of repeatedly re-hypothecating assets to boost yields. On June 13, Celsius halted customer withdrawals due to "extreme market conditions," leading to a sharp drop in Bitcoin and Ethereum prices.
Amplifi's Solution
Amplifi provides users with the yield options and transparency of DeFi while maintaining the simplicity of traditional platforms —offering the best of both worlds. To achieve this, Amplifi employs the following features:
Dynamic Asset Management (Optimization and Rebalancing): Amplifi’s AI/ML engine leverages proprietary institutional-grade strategies to redistribute and optimize assets. It automatically rebalances portfolios into the highest APY pools, ensuring efficient management of both stablecoin and RWA-based strategies.
Cross-chain capabilities: Amplifi offers seamless cross-chain liquidity without the need for manual bridging or gas fees, thanks to Chainlink’s CCIP. This allows users to benefit from optimized cross-chain strategies, securely transferring tokens and data across different networks. CCIP ensures these processes are efficient and secure, streamlining user experience while minimizing risks.
Account abstraction: Amplifi enables seamless, gasless (sponsor-paid) transactions and simple Web2 logins (via social platforms like Facebook and Gmail), allowing users to create and manage wallets for on-chain activities easily, thanks to Thirdweb.
Architecture Overview
The Amplifi protocol is hybrid-decentralized, comprising both open-source (smart contract) and closed-source (AI/ML engine, authorization & authentication) code working together.
The strategies employed by our AI/ML engine are based on proprietary algorithms, which range from standard input-output methods to more advanced machine-learning (ML) techniques.
This allows us to achieve the two main objectives of the Amplifi platform:
We use weighted approaches to balance risk and return. Techniques such as evolutionary algorithms, gradient descent, and portfolio optimization methods—primarily based on Markowitz portfolio theory—are integrated based on the complexity and constraints of the problem.
Our strategies incorporate cross-machine learning techniques to ensure they correlate effectively, providing significant maintainability advantages across our distribution methods.
Last updated
