There is project called Sensi, Thier Innovative product is called "SmartYield " .
**SmartYield Overview and Functionality**
**What is SmartYield?**
SmartYield (SY) is a component of the SENSI ecosystem, designed to provide a novel solution for liquidity providers within the DeFi (Decentralized Finance) space. The primary goal of SmartYield is to allow liquidity providers to earn higher yields on their deposited assets while minimizing the risks traditionally associated with providing liquidity to DeFi protocols. It achieves this by leveraging a combination of low-risk assets and hedging strategies, thereby mitigating the risk of impermanent loss.
**How SmartYield Works**
The SmartYield system is built on the Binance Smart Chain (BSC) and is designed to be modular, allowing it to potentially support other chains like Ethereum and Polygon in the future. Here’s a detailed breakdown of its components and workflow:
1. **Architecture and Contracts:**
- **SmartYield Manager v3 (SYM v3):** Acts as the central coordinator, managing interactions with other components such as SmartYield Yielder v3 and SENSI Locking v3.
- **SmartYield Vaults (SYV):** Each vault corresponds to a specific crypto chain and manages a strategy for liquidity provision
2. **Investment Process:**
- Investors contribute a single type of cryptocurrency (e.g., BNB) as a unified investment.
- A small deposit fee is deducted to cover infrastructure costs and team expenses (currently 2% for infrastructure and 1% for team expenses)
3. **Liquidity Distribution:**
- The invested amounts are allocated among different SmartYield Vaults (SYVs), each following a specific liquidity management strategy
4. **Token Management:**
- The system determines the required token pairs for each vault and converts the investments accordingly.
5. **Dynamic Adjustments and Rewards:**
- If token prices change, the liquidity is withdrawn and repositioned to align with new market conditions.