DeFi yield optimization

Derby Finance has developed an investment management game. The goal of the game is to determine the optimal capital allocation for the Derby vaults between a whitelisted set of DeFi applications. The Derby vaults will contain solely liquidity pool tokens from these whitelisted DeFi protocols. Just to remind, Liquidity Pool tokens (LP tokens) are digital “receipts” with which you can reclaim your investments plus yield back from a DeFi application. By owning a Liquidity Pool token you are essentially exposed to the risks and rewards of that underlying DeFi application. Our Derby vaults are where DeFi investors will ultimately invest their money into and via the liquidity pool tokens in the vaults they get a diversified exposure on DeFi yields from various DeFi applications. The list of DeFi applications which are suited for our game is determined by the Derby DAO in a monthly whitelisting process. The capital allocation determined by the game is not static, it will rebalance bi-weekly. The allocations also don't concentrate on a single Blockchain like Ethereum. The underlying mechanics of the Derby vaults will automatically bridge value between blockchains and layer 2s if the allocations determined by the game require it. This all leads to a community powered yield optimisation solution for DeFi where the Derby vaults always follow the latest and best yield trends in the DeFi market. A description of this game will be given below.