BetterYieldHow It Works

How BetterYield AI Works

Complete technical breakdown of AI-powered Uniswap V3 optimization using Chainlink infrastructure

Complete Step-by-Step Process

1. Connect & Discover

Features:

  • Wallet connection via WalletManager smart contract
  • Blockchain scanning for existing Uniswap V3 positions
  • Real-time price fetching via Chainlink Data Feeds
  • Position analysis: APR calculation, efficiency, fees earned
  • Issue detection: out-of-range periods, low efficiency

2. AI-Powered Analysis via Chainlink Functions

Features:

  • Chainlink Functions triggers off-chain AI computation
  • AI analyzes market data: TVL, volume, volatility patterns
  • When TVL drops → AI automatically adjusts narrowing range for liquidity concentration
  • Determines optimal tick price range to maximize fee collection
  • APR improvement estimation using concentrated liquidity formula
  • Strategy generation: rebalance frequency, compound timing

3. Chainlink Automation - Rebalancing Process

Features:

  • Chainlink Keepers registration for 24/7 monitoring
  • Price boundary monitoring: trigger 5% before out of range
  • Chainlink Data Feeds → monitors ETH/USDC price volatility
  • Automated rebalancing process:
    • 1. Unmint old position (decreaseLiquidity)
    • 2. Collect accumulated fees (collect)
    • 3. Calculate new optimal range
    • 4. Mint new position in optimal range
    • 5. Compound collected fees
  • Gas optimization and slippage protection

4. Real-time Monitoring

Features:

  • Live position tracking and performance metrics
  • Automation activity logs and transaction history
  • APR trend analysis and yield comparisons
  • Risk monitoring: impermanent loss, position health
  • Emergency controls and pause functionality

System Architecture

User Interface

User Wallet
BetterYieldMain Contract

Core Components

Position Scanner
AI Optimizer
Automation Manager

Chainlink Services

Data Feeds
Functions
Automation
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