Background

DeFi vaults are a crucial component of the decentralized finance (DeFi) ecosystem, facilitating various financial activities including automating yield generation and rebalancing processes to optimize returns for users. By dynamically shifting capital as new opportunities arise, DeFi vaults allow users to passively invest without needing in-depth knowledge of the underlying protocols or decentralized finance mechanisms.

Function of RoboNet

RoboNet offers a variety of vaults where users can deposit ERC-20 tokens to automate yield-generating strategies. These vaults utilize decentralized AI agents to capture pricing inefficiencies and generate yield, allowing Robonet to provide risk management strategies without the need for active user involvement.

Key Terms

ERC-20 Tokens: A standard for fungible tokens on the Ethereum blockchain, which ensures that tokens are compatible with the broader Ethereum ecosystem.

Vault: A vault is a ERC4626-compliant smart contract that securely stores and manages assets on behalf of its users. It automates the investment process, allowing users to deposit their assets and receive agent tokens representing their ownership. The vault uses these assets to generate returns through various strategies, efficiently handling profits and losses. Users can withdraw their assets by redeeming their agent tokens at any time. Vaults provide a convenient and secure way to invest, leveraging the power of decentralized finance (DeFi).

Yield Generation: The process of earning returns on investments, often through interest or other financial mechanisms in DeFi protocols.

Decentralized AI Agents: Autonomous software programs that use artificial intelligence to execute vault strategies on behalf of it's users, optimizing performance and decision-making without human intervention.