# AutoFi USDC-Yield Vault (afUSDC-Yield)

Pure DeFi Yield Optimizer

---
config:
  theme: neutral
---
flowchart TB
    subgraph PlasmaVault[afUSDC-Yield Plasma Vault]
        Vault[ERC-4626 Vault<br/>Base Asset: USDC]
        AM[Access Manager]
        FM[Fee Manager]
        WM[Withdraw Manager]
    end

    subgraph Fuses[Attached Fuses]
        SF1[SupplyFuseMorpho]
        SF2[SupplyFuseAaveV3]
        SF3[SupplyFuseCompoundV3]
        BF1[BalanceFuseMorpho]
        BF2[BalanceFuseAaveV3]
        BF3[BalanceFuseCompoundV3]
        RF[RewardsClaimFuses]
    end

    subgraph Protocols[DeFi Protocols on Base]
        Morpho[(Morpho Blue)]
        Aave[(Aave V3)]
        Compound[(Compound V3)]
    end

    Alpha[Alpha Bot<br/>YieldOptimizer]
    Oracle[Price Oracle<br/>Middleware]

    Vault --> Fuses
    SF1 --> Morpho
    SF2 --> Aave
    SF3 --> Compound
    Alpha -->|execute| Vault
    Oracle -->|pricing| Vault
    AM -->|ALPHA_ROLE| Alpha

# What It Is

afUSDC-Yield automatically allocates your USDC across the best-performing DeFi lending protocols. Your deposits work around the clock, seeking the highest available yields without manual intervention.

# How It Works

When you deposit USDC, the strategy monitors yield rates across leading lending protocols including Morpho, Aave, and Compound. When rate differentials become meaningful, the vault moves capital to capture better yields. The vault also claims and compounds protocol rewards (like MORPHO and COMP tokens) back into your position.

# Target Returns

8-15% APY from lending interest and protocol incentives

# Who It’s For

Investors seeking higher yields than traditional stablecoin savings
Those who want DeFi exposure without managing multiple positions
Users looking for a passive yield strategy
Anyone seeking an alternative to holding idle USDC

# Benefits

Automated Optimization: No need to compare rates or move funds manually. The vault monitors and rebalances continuously.

Diversified Protocol Risk: Allocations spread across multiple battle-tested lending platforms, reducing single-point-of-failure risk.

Compounded Returns: Protocol rewards are claimed and reinvested automatically.

Gas Efficient: Pooled capital amortizes rebalancing costs across all depositors.

# Risk Profile

Medium Risk: Capital is deployed to established, audited lending protocols. Primary risks include smart contract vulnerabilities and protocol-specific risks. No exposure to volatile assets; your position remains denominated in USDC.

# afUSDC-Yield Strategy Flow

---
config:
  theme: neutral
---
sequenceDiagram
    participant Scheduler
    participant Alpha as Alpha Bot
    participant Vault as Plasma Vault
    participant Morpho
    participant Aave
    participant Compound

    loop Every 4 hours
        Scheduler->>Alpha: trigger rebalance check
        
        Alpha->>Morpho: query current APY
        Alpha->>Aave: query current APY
        Alpha->>Compound: query current APY
        
        Alpha->>Alpha: calculate optimal allocation
        Alpha->>Alpha: check if delta > 50bps threshold
        
        alt Rebalance needed
            Alpha->>Vault: execute FuseActions
            Vault->>Morpho: withdraw if underperforming
            Vault->>Aave: supply if best yield
            Vault-->>Alpha: success
        else No rebalance
            Alpha->>Alpha: log and wait
        end
    end

    loop Weekly
        Alpha->>Vault: claim rewards via RewardsFuses
        Vault->>Morpho: claim MORPHO tokens
        Vault->>Compound: claim COMP tokens
        Alpha->>Vault: swap rewards to USDC
        Alpha->>Vault: compound into best yield
    end