Zyfai Agents delivered +98.61% higher yield compared to static USDC strategies in March.

That is nearly double February’s outperformance (+51.13%).

While DeFi yields continued compressing across the board, Zyfai’s rebalancing engine widened the gap by moving faster and smarter than any human could.

What defined March:

• Shipped Ethereum mainnet deployment

• Introduced ETH yields on Ethereum, Base, and Arbitrum

• Announced Agent Vaults primitive

• Participated in Synthesis hackathon as a track sponsor, with builders shipping apps on Zyfai infrastructure

• Saved millions for users during the Resolv incident, all autonomously

• Surpassed $2B in Agentic Volume

Meanwhile, 13,323 Agents kept doing their job across four chains.

Below is a summary of the key metrics that defined Zyfai’s performance in March.

March Performance Summary (USDC-denominated)

March 1—March 31, 2026

• Average Zyfai Agent APY: 7.43%

• Average Static Pool APY: 3.74%

• Net Yield Outperformance: +98.61% vs. static DeFi

Despite relatively moderate absolute APYs, Zyfai’s ability to continuously rebalance across opportunities resulted in a 2x performance advantage over passive strategies, maintaining a stable spread and capturing yield inefficiencies across protocols.

• Agent APY remained consistently above market baseline

• Static pool yields showed higher volatility and lower averages

• Rebalancing allowed capture of short-lived opportunities

This reinforces a critical thesis:

Yield is no longer about finding the highest APY, but about maintaining optimal allocation over time.

But the most important part of capital management is capital preservation. APY means little if the capital itself is at risk.

One of the key events in March was the Resolv USR depeg incident. While some curators were still allocating capital to “markets in need,” Zyfai Agents detected the anomaly and rebalanced into safer pools long before USR collapsed.

As a result, Zyfai users were not affected by the Resolv incident.

This once again confirmed that Agents are not only more efficient at growing capital, but also at preserving it. They do not sleep, do not make mistakes, and do not act on emotion. Instead, they monitor markets 24/7 and execute autonomously.

Read the full article: https://x.com/Zyfai_/status/2036119040528375853

Yield Performance by Wallet Size: March

To illustrate yield performance in practice, the table below shows actual weighted APYs by wallet size cohort, measured net of fees and inclusive of rZFI incentives where applicable.

$1K—$10K Wallets

• Average APY (with rZFI): 9.0055%

• Average APY (native, no rZFI): 6.305%

• Example Wallet Link

$10K—$100K Wallets

• Average APY (with rZFI): 8.82%

• Average APY (native, no rZFI): 6.05%

• Example Wallet Link

$100K+ Wallets

• Average APY (with rZFI): 6.365%

• Average APY (native, no rZFI): 3.5992%

• Example Wallet Link

Key observations:

• Smaller wallets benefit from faster capital cycling and higher relative APYs.

• Larger wallets prioritize depth, liquidity safety, and consistency.

• Despite AUM fluctuations and yield compression, relative outperformance was preserved across all cohorts.

Protocol Metrics

• Total AUM: ~$8.5M — $9M range

• Total Agents Deployed: 13,323

• Total Funds Moved: $2.3B+

• Total Rebalancing Transactions: 233,126

Zyfai continues to demonstrate strong capital efficiency, with large transaction volume relative to AUM, a key indicator of active optimization.

By chain

Ethereum

• AUM: $272K + 521 ETH

• Agents Deployed: 228

• Rebalancing Transactions: 38,116

• Average APY (with incentives): 6.71%

Base

• AUM: $5.6M + 156 ETH

• Agents Deployed: 5,690

• Rebalancing Transactions: 106,330

• Average APY (with incentives): 7.87%

Arbitrum

• AUM: $1.17M USDC + 65.8 ETH

• Agents Deployed: 2,152

• Rebalancing Transactions: 47,971

• Average APY (with incentives): 6.97%

Sonic

• AUM: $261K USDC

• Agents Deployed: 3,859

• Rebalancing Transactions: 34,143

• Average APY (with incentives): 3.75%

Plasma

• AUM: $142K USDT

• Agents Deployed: 919

• Rebalancing Transactions: 6,566

• Average APY (with incentives): 5.11%

How Agents Optimize

Every rebalance decision is based on:

• Real-time APY changes

• Liquidity depth

• Protocol risk parameters

• Collateral composition

• Market conditions

All rule-based. All verifiable onchain.

Capital Efficiency

A defining characteristic of March was high capital turnover relative to AUM:

• $2.3B+ funds moved on ~$9M AUM

• Frequent rebalancing cycles across strategies

• Continuous capture of micro-yield opportunities

The edge isn’t capital size. It’s execution frequency and precision: Agents capture opportunities that humans can’t.

February vs. March Comparison

March showed a clear improvement across all key yield metrics compared to February.

• Agent APY increased from 6.19% → 7.43%, showing stronger execution and better capital allocation.

• Static APY decreased from 4.09% → 3.74%, reflecting broader market yield compression.

• Yield Outperformance jumped significantly from +51.13% → +98.61%, nearly doubling Zyfai’s edge over passive strategies.

Even as baseline yields declined, Zyfai improved performance, leading to a much wider gap vs. static strategies.

What This Means

March validates a structural shift in DeFi: passive yield strategies are becoming increasingly inefficient in dynamic markets.

As markets mature, automation becomes the primary driver of yield outperformance while also proving superior at capital preservation, as the Resolv incident demonstrated.

TL;DR: March 2026

• +98.61% yield outperformance vs. static strategies

• 7.43% average Zyfai Agent APY

• $8.5M–$9M AUM

• 13,323 Agents deployed

• $2.3B+ cumulative funds moved

• 233,126 rebalancing transactions executed

Zyfai is not just outperforming the market, it’s widening the gap.

What’s Next

April focus:

• Agent Vaults launch

• ETH yields expansion

• More assets

• UX improvements

The goal remains unchanged: make Agents the main entry point for people to access DeFi.

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

Collected fees are distributed as follows:

• 100% of protocol fees flow to the DAO treasury

• 50% is then distributed to $ZFI stakers in USDC (monthly, pro-rata)

• The remaining 50% goes to protocol operations and R&D under the DAO mandate

This creates powerful flywheels:

Zyfai

@Zyfai_

Earning yield on USDC and ETH is good.
Earning ~20% APY in USDC on your ZFI is better.

Plus, staking ZFI:
→ Boosts your USDC and ETH yield with 2x rebalancing frequency
→ Gives you a say in DAO decisions

ZFI explained

29

10:12 PM • Mar 31, 2026

Previous report is available here:

February Protocol Report: USDC Yield for $ZFI Stakers

Zyfai

Mar 3, 2026

Every month, collected performance fees are distributed as follows:100% of protocol fees flow to the DAO treasury50% of protocol fees are then distributed to $ZFI stakers, paid in USDC (monthly, pro-r...

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March Report

• Snapshot date: April 1, 2026

• Stakers: 2,303

• $ZFI staked: 44,662,914

• Performance fees accrued: $2,115

• $ZFI price at snapshot: $0.0065

• Staking amount at snapshot in $ value: $290,308

• 50% streaming to $ZFI stakers = $1,057 or 3.4% APY → Available in your staking dashboard: https://zyf.ai/staking

  • TX ID: https://basescan.org/tx/0xb82091e739fc837cd2ab3d7ad40439b33b02f12928db34fdc98f34875a902e4a

• 50% allocated to Ondefy Ltd for protocol operations and development under the DAO mandate = $1,057

  • TX ID: https://basescan.org/tx/0x3464562a37f1977f53bb6624a85e45156244b25093b11f7da4a96e7006b6fa68

A note on fee collection

Currently, Zyfai collects performance fees only when users withdraw. This means more assets under management (AUM) doesn't automatically translate to more revenue for stakers.

We're working on changing this. The new model will collect fees periodically without requiring users to withdraw, making protocol revenue (and staking yield) more predictable.

More details soon.

How to maximize your monthly staking yield?

If you want the highest share of rewards, timing matters.

• The earlier in the month you stake, the larger your position at snapshot time.

• Snapshot happens at the end of every calendar month.

• If you staked in Month A, you receive yield throughout Month B.

• If you unstake before the end-of-month snapshot, you are excluded from the next month's reward stream.

What's next?

In March we:

• Shipped Ethereum mainnet deployment

• Introduced ETH yields on Ethereum, Base, and Arbitrum

• Announced Agent Vaults primitive

• Participated in Synthesis hackathon as a track sponsor, with builders shipping apps on Zyfai infrastructure

• Saved millions for users during Resolv incident, all autonomously

• Surpassed $2B in Agentic Volume

In April, we're focused on launching Agent Vaults, expanding asset support, and continuing to improve our Agents and product UX.

Agent Vaults

Zyfai

Mar 30, 2026

Of the $20B in onchain capital allocation, only $40M runs automatically. Most of DeFi's capital management is handled manually by wealth managers. Zyfai is here to change that.

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Thanks to everyone who shared feedback in March!

Join our Discord community:

https://discord.gg/zyfai

Onward!

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

Zyfai has proved that Agents can do more than optimize yield. They monitor risk constantly. The recent events with Resolv and Stream showed what happens when positions go unmonitored: depegs, liquidity traps, and users left exposed. Zyfai's Agents detected these risks and rebalanced user funds to safer opportunities faster than any human could. This happened across 13,000 wallets, moving $2B across 60 pools and 4 chains.

Now imagine that same capability running directly from a vault, deployable and manageable by anyone through the Zyfai Dashboard. The DeFi Gnomes can now handle wallets and vaults.

DeFi Gnomes?

In Swiss folklore, gnomes were mystical creatures believed to operate beneath the surface, managing hidden resources and protecting value. This is what Zyfai's Agents represent: a hidden force that unlocks autonomous control over capital. Invisible because it abstracts all the complexity.

TL;DR: Agent Vaults, a new vault primitive from Zyfai powered by rule-based Agents. Live next week.

• Deploy: Contract source (open, permissionless vault on GitHub)

• Explore: Zyfai Agent Vaults (integrate automated yield in hours)

From Wallets to Vaults

Zyfai started by building Agents for Smart Wallets. Each user gets their own Safe multisig with Session Keys that define strict guardrails for what the Agent can and can't do. That model works, and it powers everything described above.

But as partners came to us (fintechs, neobanks, DeFi protocols), the need shifted. They didn't want to onboard users into individual Smart Wallets. They wanted something simpler: a single vault they could plug into, with all of Zyfai's automation running underneath. Deploy once. Manage from a dashboard. Let the gnomes handle the rest.

That's why we built Agent Vaults.

The Problem with Vaults Today

Most production vaults run on manual operations. The wealth manager is responsible for everything: updating the NAV from oracle data on every deposit, withdrawal, and rebalance. Adding new DeFi protocols by manually interacting with their frontends. Elaborating and adjusting strategies. Monitoring risk around the clock. Executing rebalances by hand.

There is no standardized automation for any of this. The workload scales linearly with the number of strategies a vault runs, and it never stops.

Earlier vault standards like ERC-4626 offered a clean synchronous interface: deposit, receive shares, withdraw. But synchronous operations can't support complex strategies that need to unwind positions across multiple protocols before settling. ERC-7540 solved that technical constraint by making operations asynchronous. In doing so, it created an operational one: every async vault now requires a human managing the settlement cycle.

This presents a distribution problem. Fintechs, neobanks, and protocols want to offer DeFi yield to their users. But integrating vault-based yield today means either building an in-house wealth management team (specialized, expensive, available around the clock) or not offering yield at all.

The infrastructure for complex yield strategies exists. The tooling to run them without constant human intervention does not. That's the automation gap, and it's why $19.96B of the $20B market still runs on manual operations.

How Agent Vaults Work

We built a new vault contract, the Smart Account Wrapper, that automates the entire curation lifecycle. The concept is simple: the vault wraps a Safe Smart Account Agent. Every deposit into the vault redirects funds straight to the Smart Wallet, where Zyfai's automation takes over. An oracle and indexer sit in between to handle actions and accounting.

From the integrator's side, it behaves like a standard ERC-4626 vault. Deposits go in. Yield accrues. Withdrawals come out. No async complexity exposed.

Under the hood, it runs ERC-7540 for the complex operations that drive real yield. The wealth manager's manual work (NAV updates, withdrawal processing, strategy rebalancing, claim fulfillment) is replaced by Zyfai's automation infrastructure. The same Safe multisig and Session Key architecture that secures 13,000 individual wallets now powers the vault.

Agent Vaults Flow

Five components. Each has a single job.

1. Safe Multisig (Owner) has full control over the vault: upgrades, asset reallocation, parameter changes. No timelock on upgrades; the multisig threshold is the security boundary. This is a deliberate design choice, and users opt into the multisig's trust model.

2. Vault (Smart Account Wrapper) is the contract integrators and users interact with. ERC-4626 and ERC-7540 compliant. Manages share accounting, tracks the value of deployed assets, and supports ERC-1271 signature delegation for composability with aggregators, routers, and other ERC-7540 operators acting on behalf of depositors.

3. Zyfai Smart Account (Agent) is where allocated capital lives and DeFi strategies are executed.

4. Oracle Service syncs the NAV at each operation: deposits, withdrawals, and rebalances. When the Zyfai Smart Account executes transactions, the Oracle Service calculates the current value and reports it back to the Vault via capital out and capital back.

5. Indexer is the automation engine. Every 60 seconds, it polls pending withdrawals, and fulfills them through the Smart Account, sending requests to reallocate idle capital.

6. Users and Partners: Deposit, withdraw, and claim.

The vault contract is open and permissionless. Anyone can deploy an instance and connect it to a Zyfai Smart Account. Full architecture documentation, trust model, and contract reference are available on GitHub.

What This Unlocks

When wealth management is automated, DeFi yield becomes pluggable infrastructure.

• For integrators. A fintech or neobank can plug in a single ERC-4626 vault and offer yield strategies to their users without hiring a wealth management team, monitoring DeFi opportunities, or processing settlements. Their users get automated withdrawals with no claim delays.

• For wealth managers. The operational burden that limits how many vaults they can manage disappears. A wealth manager focuses on strategy selection and risk parameters. Execution runs on its own.

• For Agents. Agent-to-vault deposits open a new execution primitive. Autonomous agents will have the tools to allocate capital into vaults directly, enabling strategies like automated treasury management or cross-protocol yield routing without human coordination.

0.2% automation in a $20B market is early. As more capital flows onchain through consumer products that need embedded yield, the teams that can offer it without operational overhead will have a structural advantage.

The automation gap is the opportunity. We're building the infrastructure to close it.

Welcome to Agent Vaults → https://zyf.ai/vault

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

That's why we built Verifiable Agents: autonomous Agents that optimize yield on your behalf, operating within strict permissions you define, secured by infrastructure you control, and verifiable with ZK proofs stored in the ERC-8004 Validation Registry.

Verifiable Agents: A New Blueprint for Autonomous DeFi with ZK Proofs & ERC-8004

Zyfai

Dec 5, 2025

The promise of the agentic economy is being held back by a single question: How can you truly trust an agent? That is why we're taking a decisive step: integrating ZK proofs and the ERC-8004 standard ...

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But Agents need an environment that matches their principles. They need a world computer that doesn't ask for permission and can't be turned off. They need to operate where trust assumptions are minimized and neutrality is the default.

They need Ethereum.

Tomorrow, Zyfai will deploy on Ethereum mainnet.

For the first time, your Agent will support ETH, the credibly neutral asset at the center of decentralized finance.

If you hold ETH because you believe in Ethereum, this is for you.

Your ETH doesn't need to sit idle. It doesn't need to be bridged or converted into something it isn't. It doesn't need to be handed to a vault operator who pools it with everyone else's.

It needs an Agent.

Deploy your Smart Account on Ethereum mainnet. Deposit ETH. Choose the protocols you trust. Your Agent handles the rest: scanning, comparing, rebalancing, compounding, all within the permissions you define, all on L1, all fully self-custodial.

Ethereum is where Agents should live. Zyfai is almost here.

Why Ethereum. Why Now.

Ethereum L1 is where DeFi was born. It is the settlement layer: the base reality that every L2 ultimately reports to, the liquidity center that anchors hundreds of billions in value, the trust layer that institutions, protocols, and individuals converge on because nothing else offers the same combination of security, decentralization, and composability.

We started on L2s deliberately. These were our proving grounds. The place to ship fast, iterate on the rebalancing engine, battle-test the infra across different execution environments, and demonstrate that autonomous yield optimization works at scale.

It does. Over $11M AUM at the peak. More than 13,000 agents deployed. $2B+ in agentic volume processed. All self-custodial. All verifiable.

L2s proved the model. Ethereum mainnet is where we were always headed.

For individuals deploying significant capital, Ethereum mainnet is the only chain that matters: the deepest liquidity in lending markets, the most established and battle-tested protocols, and the lowest risk of chain outage.

ETH, The First Non-Stablecoin Asset at Zyfai

Since launch, Zyfai has optimized yield exclusively on stablecoins. That was intentional. Stablecoins are the simplest expression of the Agent thesis: deposit a stable asset, let the Agent find the highest risk-adjusted yield, rebalance when something better appears.

But stablecoins are tethered to fiat monetary systems. They inherit the trust assumptions of their issuers, the regulatory frameworks of their jurisdictions, the counterparty risk of their reserves.

ETH is different.

ETH is credibly neutral, not attached to any government, corporation, or monetary policy. It's the native asset of Ethereum, the economic fuel that secures the network, and increasingly the collateral of choice across DeFi. It is, by any reasonable measure, the most important non-Bitcoin asset in crypto.

Gauthier ⬆️

@goatv_bk

ETH is becoming the most interesting asset in any portfolio.

The first programmable reserve asset with a native yield.

Gauthier ⬆️

@goatv_bk

ETH is a bet on the native currency of the agentic economy.

196

11:13 PM • Mar 6, 2026

And yet, for most ETH holders, yield options are limited. You can stake for validator rewards. You can manually deposit into lending protocols, compare rates, move funds when something better appears. Or you can sit on a spot position and watch it earn nothing while the protocols around it generate yield from borrowers willing to pay for access to the asset.

We're happy to finally bring autonomous yield optimization to ETH holders.

Deposit ETH into your self-custodial Safe7579 Smart Account, and your Agent begins scanning supported lending protocols on Ethereum mainnet for the highest risk-adjusted yield and rebalancing when the math justifies it.

In other words, the same deterministic logic that has optimized millions in stablecoin yield now works for the asset that powers DeFi itself.

Built for Capital That Demands More

Ethereum mainnet is where serious capital lives. And serious capital has serious requirements.

Zyfai was engineered for exactly this.

Self-Custodial by Design. Every user deploys their own Smart Account, a modular smart contract wallet built on Safe by Rhinestone (Safe7579). It's the same standard that secures over $100B of institutional capital globally. That means there is no pooled capital or shared vault, your funds stay in your Smart Account. Your wallet, your keys, DeFi your positions.

Zyfai

@Zyfai_

Did you know that all wallets created on ZyFAI can be accessed via the @safe UI?

ZyFAI delivers automated stablecoin yield while ensuring you always have full custody of your assets

Let us explain

49

9:06 PM • Aug 1, 2025

Rule-based Rebalancing. The Smart Rebalancing v.2 Engine is not a black-box AI making unpredictable decisions with your capital. It's a rule-based, deterministic system that runs five explicit checks before every rebalance:

• Pool concentration check: Your Agent compares the pool's total size to your wallet balance, ensuring deep safety margins.

• Delta APY threshold: A rebalance only triggers when the yield improvement crosses a meaningful threshold, minor fluctuations are ignored.

• 7-day APY stability analysis: The target pool's yield must have remained within defined bounds over the past week. The Agent avoids chasing spikes.

• Break-even calculation: The Agent estimates slippage, gas, and fees, then calculates how many days it would take for the extra yield to cover the cost of rebalancing. If the math doesn't work, it doesn't move.

• Liquidity health monitoring: The Agent monitors liquidity, utilization and the Interest Rate Model (IRM) of each money market. When a market becomes highly utilized and remaining liquidity shrinks to a level that could affect withdrawals, the Agent proactively exits your position.

Every parameter is transparent. Every decision is verifiable with ZK proofs stored in the ERC-8004 Validation Registry. Nothing is left to an LLM's interpretation.

Smart Rebalancing v.2: Perfectly Balanced, As All Things Should Be

Zyfai

Dec 5, 2025

When we launched Smart Rebalancing Engine v.2 last week, we announced a fundamental shift in how capital efficiency works in DeFi. The thesis was clear: intelligent rebalancing checks driven by a secu...

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Session Keys with Scoped Permissions. When you activate your Agent, you sign Session Keys. It's cryptographic permissions that define exactly which protocols and pools your Agent can interact with. That means that your Agent cannot execute transactions that are outside of your whitelist. They are temporary, revocable, and fully under your control.

This is the architecture that separates Zyfai from vault-based protocols: your Agent interacts directly with the lending protocol's contracts. Even if protocol's frontend were compromised, your funds remain safe because the Agent operates at the smart contract level, not through a web interface.

Zyfai

@Zyfai_

Did you know you can customize your ZyFAI Agent more than Akira Nakai customizes his Porsche?

Select the chains it can interact with
Pick the protocols it can use
Specify the pools it can deposit into

Some might call it magic. We call it the power of session keys

56

11:04 PM • Jul 28, 2025

Security Proxy Gateway. All Agent execution requests pass through an additional security layer before reaching your Smart Account. This gateway validates that every proposed action complies with your Session Key permissions and the protocol's safety rules. It's an independent checkpoint, a second line of defense between the Agent's logic and your capital.

Zyfai's New Security Proxy System: Same Trust Model with Improved Execution

Zyfai

Dec 24, 2025

In the Agentic Economy, trust is essential. But usability ultimately determines whether trust is exercised. Session Keys provide solid security guarantees. They allow users to delegate limited authori...

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Audited Infrastructure. Zyfai Smart Accounts are built on Rhinestone infra: SmartSession, Safe7579, and Core modules, all independently audited. Gas sponsorship is handled by Pimlico's paymaster, also audited. Zyfai protocol itself was end-to-end audited by Sherlock in December 2025 with 0 critical findings.

Zyfai

@Zyfai_

To close the year on a high note, Zyfai has completed a comprehensive, end-to-end protocol audit by @sherlockdefi.

No major issues were found, marking a key milestone in establishing trust in Agentic Finance.

The audit report is available below

65

11:39 PM • Dec 25, 2025

Quant-Curated Opportunities. Your Agent only operates within a pre-approved list of protocols and pools. Every opportunity on Ethereum mainnet was vetted by Zyfai's quants team across technical risk (multiple audits from top firms, no unresolved critical findings, tier-1 oracles, clean exploit history), operational risk (proven team, active development, proper multisig governance), and economic risk (sustainable fee-based yield sources, deep liquidity, permissionless exits). We apply a Lindy filter: the longer a protocol has operated securely with growing TVL, the more trust it earns.

If we can't clearly trace how a protocol generates yield, we don't integrate. Your Agent never touches an opportunity that hasn't passed the hardest test first.

Zyfai

@Zyfai_

Capital efficiency means nothing without capital preservation.

APY volatility. Stablecoin depegs. Exploits. You can't monitor all of that 24/7.

At Zyfai, we built a system that never sleeps.

Here's what it monitors around the clock to protect your capital

27

9:13 PM • Feb 20, 2026

Here's the list of approved protocols on Ethereum mainnet:

• Aave

• Compound

• Spark

• Morpho

• Fluid

• Dolomite

• Euler

• Wasabi

• Yearn

Gas on Mainnet: How Zyfai Keeps Every Rebalance Profitable

On L2s, gas is cheap enough that rebalancing costs are negligible. Ethereum mainnet is different: gas costs can run $0.50 to $1+ per transaction, and frequent rebalancing without discipline could eat into your returns.

This is the first question any serious Ethereum user will ask: "Won't gas destroy my yield?" The answer is no, and here's why.

Zyfai has a built-in gas profitability system designed specifically for high-gas environments. The core principle: your Agent will only execute a new rebalance once your earned yield has at least covered the gas cost from the previous one two times. Gas is always deducted from accrued earnings, never from your principal.

Here's how it works in practice:

• After each rebalance, the system takes a snapshot of your current earnings and the gas cost incurred

• Before the next rebalance can fire, the Agent checks whether the yield you've earned since that snapshot (net of the protocol's 10% performance fee) exceeds the gas spent

• If it doesn't, the Agent waits

Example

Say you have 1,000 USDC and the Agent rebalances from Pool A to Pool B, costing ~$0.50 in gas. The system records your earnings at that moment. Time passes. Pool B generates yield. Once your net earnings since the snapshot exceed $0.50, and only then, the Agent is cleared to rebalance again.

On top of the gas recovery check, a forward-looking filter runs before every opportunity is even scored: the APY improvement between your current pool and the target must generate enough extra yield within 2 days to cover any pending gas costs. This prevents the Agent from chasing a marginally better rate that won't pay off quickly enough.

The one exception is safety. If pool liquidity drops critically, a protocol health issue emerges, or a pool is removed from your preferences, the Agent rebalances immediately regardless of gas recovery status. Protecting your principal always takes priority over gas optimization.

The result: you never go negative on a rebalance cycle. The system self-regulates. More frequent rebalancing only happens when it's genuinely profitable.

Battle-Tested

We're not deploying untested infrastructure on Ethereum mainnet. Everything launching in the next few days has been running in production across 4 chains.

The numbers speak for themselves:

• Peaked at $11M+ TVL across Base, Arbitrum, Sonic, and Plasma

• 13,000+ Agents deployed and actively managing positions

• $2B+ in volume processed through autonomous rebalancing

• ~10% APY delivered on stablecoin strategies

• Zero security incidents since launch

The Smart Rebalancing v.2 engine has been live across thousands of positions, continuously optimized through real-world performance data.

OmniAccounts, our cross-chain atomic rebalancing engine, proved that the same architecture can operate across chain boundaries with sub-1.5-second execution. Ethereum mainnet is a natural extension of infrastructure that already works at scale.

The Progression

Zyfai's trajectory has been deliberate:

Phase 1: Stablecoins on L2s. Prove that autonomous yield optimization works. Build the Agent architecture, the Smart Account infrastructure, the rebalancing engine. Accumulate real users, real TVL, and real performance data.

Phase 2: OmniAccounts. Break down chain boundaries. One balance, all chains, best yields. Demonstrate that Agents can operate cross-chain with deterministic outcomes, zero slippage, and no user intervention.

Phase 3: Ethereum mainnet + ETH. Come home. Deploy on the settlement layer. Add the first non-stablecoin asset. Open the door for ETH holders who want autonomous yield optimization without leaving the ecosystem they believe in.

What comes next: More assets. More chains. More sophisticated strategies. The Agent evolves, but the principles stay the same. Self-custody. Deterministic execution. Verifiable outcomes. No trust required beyond the code.

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

In February, Zyfai outperformed static USDC strategies by 51.13% across chains, despite increased volatility and liquidity rotation across DeFi markets.

While AUM saw short-term fluctuations after peaking above $11M mid-month, agentic volume surpassed $2B, showing strong capital efficiency as Agents continuously rotated capital into the best opportunities.

February was defined by:

• Zyfai’s skill for OpenClaw, with ~2,000 downloads to date

• ERC-8004 support on Base and Arbitrum

• A new SDK integration with Thirdfy

• ZyfaiBot, your personal DeFi advisor

• Upcoming Ethereum mainnet launch and ETH support

• Revamped docs

• A growing amount of ZFI staked

Automation remained the performance driver. Zyfai Agents continued executing autonomously across Base, Arbitrum, Sonic, and Plasma, dynamically reallocating capital to preserve yield efficiency and risk discipline.

Below is a summary of the key metrics that defined Zyfai’s performance in February.

February Performance Summary (USDC-denominated)

February 1—February 28, 2026

• Average Zyfai Agent APY: 6.19%

• Average Static Pool APY: 4.09%

• Net Yield Outperformance: +51.13% vs. static DeFi

Even as baseline stablecoin yields compressed and capital rotated between pools, Zyfai’s deterministic allocation engine preserved meaningful spread over passive strategies.

This reinforces Zyfai’s thesis: Yield compression does not eliminate edge, agentic execution preserves it.

Yield Performance by Wallet Size: February

To illustrate yield performance in practice, the table below shows actual weighted APYs by wallet size cohort, measured net of fees and inclusive of rZFI incentives where applicable.

$1K—$10K Wallets

• Average APY (with rZFI): 8.35%

• Average APY (native, no rZFI): 6.88%+

• Example Wallet Link

$10K—$100K Wallets

• Average APY (with rZFI): 6.36%

• Average APY (native, no rZFI): 4.88%

• Example Wallet Link

$100K+ Wallets

• Average APY (with rZFI): 6.15%

• Average APY (native, no rZFI): 4.67%

• Example Wallet Link

Key observations:

• Smaller wallets benefit from faster capital cycling and higher relative APYs

• Larger wallets prioritize depth, liquidity safety, and consistency

• Despite AUM fluctuations and yield compression, relative outperformance was preserved across all cohorts.

Key Metrics

• Total Agents Deployed: 12,891

• Total Funds Moved: $2B+

• Total AUM: $7–8M range

By chain:

Base

• AUM: ~$5.31M

• Agents Deployed: 5,473

• Rebalancing Transactions: 88,619

Arbitrum

• AUM: ~$1.47M

• Agents Deployed: 2,021

• Rebalancing Transactions: 43,870

Sonic

• AUM: ~$248K

• Agents Deployed: 3,859

• Rebalancing Transactions: 34,014

Plasma

• AUM: ~$145K

• Agents Deployed: 878

• Rebalancing Transactions: 6,172

Sustained Multi-Chain Execution

Total rebalancing transactions across chains now exceed 170,000+ cumulative rebalances.

Zyfai Agents operate continuously, reallocating capital based on numerous factors:

• Money market APY changes

• Underlying collateral changes

• Protocol health

• Liquidity depth & TVL stability

• Risk thresholds

• Zyfai’s exposure to certain pools

Execution remains strictly rule-based and verifiable onchain via ZK proofs stored in the ERC-8004 Validation Registry.

February Protocol Report: USDC Yield for $ZFI Stakers

A few days ago, the DAO completed monthly distribution of the collected performance fees: 50% to protocol operations and R&D under the DAO mandate and 50% to $ZFI stakers, paid in USDC.

• $ZFI staked: 27,329,232

• Performance fees accrued: $4,968

• $ZFI price at the snapshot: $0.006105

Result: 19.55% APY to $ZFI stakers, paid in USDC.

This gives stakers direct flexibility: buy more $ZFI, deposit USDC back into Zyfai, or do whatever they want with it. Meanwhile, the protocol retains resources to scale faster.

February Protocol Report is available here: https://blog.zyf.ai/february-protocol-report-usdc-yield-for-dollarzfi-stakers

TL;DR: February 2026

• +51.13% yield outperformance vs. static strategies

• 6.19% average Zyfai Agent APY

• ~$7–11M TVL range throughout the month

• 12,891 Agents deployed

• $2B+ cumulative Agentic volume

February demonstrated that Zyfai’s edge is not dependent on high headline yield, but on continuous, rule-based execution.

Looking Ahead

As Zyfai moves deeper into 2026, the focus remains on:

• Improving execution efficiency and product accessibility

• Expanding agent capabilities and product offerings

• Deepening institutional-grade infrastructure and delivering new SDK integrations

• Refining risk-aware automation across chains

Whether optimizing for performance or stability, Zyfai Agents continue to operate autonomously, verifiably, and continuously on behalf of users.

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

• 100% of protocol fees flow to the DAO treasury

• 50% of protocol fees are then distributed to $ZFI stakers, paid in USDC (monthly, pro-rata)

• The remaining 50% is allocated to protocol operations and R&D under the DAO mandate

Allocating a portion of fees to protocol growth ensures Zyfai has the resources to scale faster and more sustainably.

Growth accelerates the flywheel: more AUM → more revenue.

At the same time, monthly USDC distributions from protocol revenue give stakers more flexibility:

• Buy and stake more $ZFI

• Deposit USDC back into Zyfai

Previous report is available here:

January Protocol Report: USDC Yield for $ZFI Stakers

Zyfai

Feb 2, 2026

January is over, and we're excited to share our monthly protocol report

0 collected

Collect

February Report

• Snapshot date: March 2, 2026

• Stakers: 2,183

• $ZFI staked: 27,329,232

• Performance fees accrued since last buyback: $4,968

• $ZFI price at the snapshot: $0.006105

• Staking amount at the snapshot date in $ value: $166,845

• 50% streaming to $ZFI stakers = $2,484 USDC or 19.55% APY → Available in your staking dashboard: https://zyf.ai/staking

  • TX ID: https://basescan.org/tx/0x21c281560e59f40430b1fecf9ca9c47a2d2243e84877962d8435d4a068d386a2

• 50% allocated to Ondefy Ltd for protocol operations and development under the DAO mandate = $2,484 USDC

  • TX ID: https://basescan.org/tx/0xe7fa4a06b2e29cb71579e6377556cf1d5e138c5c910da299f7b92fac67cadef0

How to maximize your monthly staking yield

If you want the highest share of rewards, timing matters.

• The earlier in the month you stake, the larger your position at snapshot time.

• Snapshot happens at the end of every calendar month.

• If you staked in Month A, you receive yield throughout Month B.

• If you unstake before the end-of-month snapshot, you are excluded from the next month's reward stream.

What's next?

In February we shipped:

• Zyfai's skill for OpenClaw, with ~2,000 downloads to date

• ERC-8004 support on Base and Arbitrum

• A new SDK integration with Thirdfy

• ZyfaiBot, your personal DeFi advisor

• Announced support for Ethereum mainnet and $ETH

• Revamped docs

In March, we'll keep making Zyfai safer for your capital, focusing on rolling out cross-chain atomic rebalancing to everyone, adding new assets, and improving UX.

Thanks to everyone who shared valuable feedback with us in February!

Join our Discord community and share your ideas: https://discord.gg/zyfai

Onward!

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

Today, we're taking another step toward that future by introducing ZyfaiBot: your free, personal DeFi advisor.

ZyfaiBot is your optional window into the sophisticated intelligence that powers the entire Zyfai ecosystem, and it requires no deposits, no transactions, and absolutely no risk to use.

Try it now: Launch ZyfaiBot in Telegram

The Zyfai Agentic Stack: Intelligence, Meet Execution

To understand ZyfaiBot, first understand two key layers underlying Zyfai's architecture:

1. The Intelligence Layer: This is the brain providing insight and determining "what to do." It spots opportunities, assesses risks, and generates actionable insights. To do this, it references data points across chains, monitoring yields, assessing protocol health, checking liquidity, and running quant models to find the best, safest opportunities.

2. The Execution Layer: This is the trust-minimized action. It's the deterministic, rule-based system that carries out strategies onchain. Every action is secured by self-custody (via Safe Smart Accounts), constrained by granular security policies, and verified by ZK proofs anchored in the ERC-8004 registry. This eliminates "hallucinations" or unexpected behavior.

The full power of Zyfai is unlocked when these layers work together: the Intelligence Layer decides, and the verifiable Execution Layer executes. But what if you could access the brain on its own?

Experience Intelligence With Zero Risk

ZyfaiBot is the pure embodiment of our Intelligence Layer, delivered directly to you.

It allows anyone to experience the core value of Zyfai with no commitment.

How does it work? It's simple. You provide a wallet address. ZyfaiBot scans it across supported chains and gets to work with our unique intelligence tooling:

• Portfolio Analysis: See your current DeFi positions.

• Smart Rebalancing Insights: Get specific, actionable recommendations on where to move your capital for better risk-adjusted yields, based on our proven rebalancing algorithms.

• Collateral & Risk Monitoring: Understand your exposure in lending protocols and receive alerts on exposed collaterals.

• Market-Wide Surveillance: Benefit from our system's 24/7 monitoring, including depeg detection for stablecoins and protocol health checks.

Using the bot itself requires no deposit, no transaction signing, and no delegation of funds. It's a completely safe environment to see what the Zyfai system sees and understand the quality of its insights.

Try it now: Launch ZyfaiBot in Telegram

Why Start with Intelligence? Building Trust for the Agentic Future

A major barrier to the Agentic Economy is trust. The idea of letting an autonomous Agent execute transactions with your capital can feel daunting.

ZyfaiBot is designed to bridge that trust gap. It demonstrates the capability, reliability, and transparency of our system in a completely safe environment. You can query it, test its insights, and see the rigor of its analysis.

It proves that our Intelligence Layer is powerful on its own. You can use it today to make smarter, more informed manual decisions. But this is just the first step.

The Full Picture: Intelligence + Execution

Once you're confident in the Intelligence, taking the next step is seamless. The same robust analysis ZyfaiBot provides can be transformed into automated, verifiable action through our full product.

You can access the complete Zyfai stack, where Intelligence meets verifiable Execution, through:

• Our official front-end at zyf.ai

• The Openclaw skill, letting you manage assets through chat

• Integrated third-party products like Zoof Wallet

Your capital can now autonomously follow the optimized strategies provided by our Intelligence Layer, with every single action cryptographically proven to follow deterministic rules.

Ready to See What Your Portfolio is Missing?

ZyfaiBot provides instant access to the most reliable, always-on intelligence that empowers you to make better decisions.

See for yourself the depth of the Intelligence Layer that forms the core of Zyfai. Try your personal DeFi advisor today, for free:

Try it now: Launch ZyfaiBot in Telegram
Or add zyfai_intelligence_bot manually in Telegram

The future starts with a simple conversation.

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

In January, Zyfai delivered +60.93% yield outperformance despite continued compression in DeFi money markets. While baseline stablecoin yields compressed across chains, Zyfai's Agents maintained consistent execution, dynamically reallocating capital to preserve high risk-adjusted returns.

Agents operated continuously across Base, Arbitrum, Plasma, and Sonic, capturing yield opportunities without manual intervention.

Over the past month, Zyfai introduced several key product features and SDK integrations, further reinforcing its position as the go-to agentic yield infrastructure for curators and the next wave of consumer apps.

• Introduced Zyfai's MCP server and Capital Splitting

• Released Openclaw skill

• Went live with ERC-8004 on mainnet

• Doubled down on the SDK and delivered integration partnerships with Zoof Wallet and Thirdfy

• Got featured in Rhinestone's case study

• Onboarded 9Summits to Zyfai, a leading curator with $93m TVL

• Continued adding new pools and improving the UI and risk.zyf.ai dashboard

• Launched the Phase 3 of the rZFI Incentives Program

Below is a summary of the key metrics that defined Zyfai's performance in January.

January Performance Summary

January 1—January 31, 2026

• Average Zyfai Agent APY: 7.84%

• Average Static Pool APY: 4.87%

• Net Yield Outperformance: +60.93% vs. static DeFi

Even as headline yields declined across the ecosystem, Zyfai's dynamic allocation model continued to outperform passive strategies by a wide margin.

This reinforces Zyfai's core thesis: automation and execution matter more than absolute yield levels.

Yield Performance by Wallet Size

To illustrate yield performance in practice, the table below shows actual weighted APYs by wallet size cohort, measured net of fees and inclusive of rZFI incentives where applicable.

$1K—$10K Wallets

• Average APY (with rZFI): 10.92%

• Average APY (native, no rZFI): 8.28%

• Total Wallets: 548

• Example Wallet Link

$10K—$100K Wallets

• Average APY (with rZFI): 8.63%

• Average APY (native, no rZFI): 5.99%

• Total Wallets: 132

• Example Wallet Link

$100K+ Wallets

• Average APY (with rZFI): 7.71%

• Average APY (native, no rZFI): 5.06%

• Total Wallets: 22

• Example Wallet Link

Key observations:

• Smaller wallets benefit from faster capital cycling and higher relative APYs

• Larger wallets prioritize depth, liquidity safety, and consistency

• Yield compression impacts all cohorts, but Zyfai Agents preserve relative outperformance

Key Metrics

January saw continued expansion in Agent deployment and execution activity.

• Total Agents Deployed: 12,215

• Total Funds Moved: $1.75B

• Total AUM: ~$10M

By chain:

Base

• Agents Deployed: 5,143

• Rebalancing Transactions: 72,675

Arbitrum

• Agents Deployed: 1,793

• Rebalancing Transactions: 36,448

Plasma

• Agents Deployed: 756

• Rebalancing Transactions: 5,760

Sonic

• Agents Deployed: 3,859

• Rebalancing Transactions: 33,926

Sustained AUM at $10M Scale

Throughout January, Zyfai maintained $9–12M TVL, demonstrating strong capital stickiness despite yield compression across DeFi.

TVL distribution by chain (approximate):

• Base: ~$7.3M

• Arbitrum: ~$2.0M

• Plasma: ~$250K

• Sonic: ~$200K

This stability highlights Zyfai's positioning as a wealth management solution, not a yield-chasing protocol.

Strategy Update: Execution Over Yield Chasing

Zyfai Agents do not rely on single-protocol exposure. Instead, they continuously evaluate:

• Blue-chip money markets

• Emerging yield primitives

• Tokenized yield instruments

• Structured and risk-aware strategies

Integrated protocols include:
Aave, Morpho, Compound, Fluid, Spark, Euler, Moonwell, Silo, Harvest, Wasabi.xyz, among others.

Agents are strictly guardrailed by a deterministic, rule-based execution engine, with every action verifiable onchain via ZK proofs stored in the ERC-8004 Validation Registry.

January Protocol Report: USDC Yield for $ZFI Stakers

In January, the DAO approved a new protocol fee allocation model.

Previously, fees were used for buybacks with several non-obvious drawbacks: sell pressure, front-running, execution complexity, and indirect value flow to stakers.

The new model is simpler. 100% of protocol fees flow to the DAO treasury. From there, 50% is distributed to $ZFI stakers as USDC (monthly, pro-rata), and 50% is allocated to protocol operations and R&D under the DAO mandate.

This gives stakers direct flexibility: buy more $ZFI, deposit USDC back into Zyfai, or do whatever they want with it. Meanwhile, the protocol retains resources to scale faster.

January Protocol Report is available here: https://blog.zyf.ai/january-protocol-report-usdc-yield-for-dollarzfi-stakers

Key Takeaways

January reinforced three core truths about Zyfai:

1. Outperformance persists even in low-yield environments

2. Automation compounds execution edge over time

3. Capital retention signals long-term trust

At the same time, the market continues to validate our broader thesis: front-ends are no longer the only way to access Agents.

1. Consumer apps integrate Zyfai Agents directly into their products (e.g. Zoof Wallet)

2. Other Agents use Zyfai Agents as execution layer to generate yield

3. Users increasingly interact with Zyfai's execution and intelligence layers via AI assistants such as Openclaw and Claude Code, through our Openclaw skill and MCP server

TL;DR: January 2026

• +60.93% yield outperformance vs. static strategies

• 7.84% average Zyfai Agent APY

• ~$10M TVL sustained

• 12,000+ Agents deployed

• $1.75B+ in Agentic Volume

• Continued expansion of Zyfai as an autonomous yield infra

Looking Ahead

As Zyfai moves deeper into 2026, the focus remains on:

• Improving execution efficiency and product accessibility

• Expanding agent capabilities and product integrations

• Deepening institutional-grade infrastructure

• Refining risk-aware automation across chains

Whether optimizing for performance or stability, Zyfai Agents continue to operate autonomously, verifiably, and continuously on behalf of users.

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

Last month, an updated protocol fee allocation model was approved by the DAO.

Zyfai

@ZyfAI_

ZIP: Zyfai Incentives Update – Protocol Fee Allocation & Operations Mandate

TL;DR: Changes to protocol fees distribution
→ 50% paid to $ZFI stakers in USDC
→ 50% allocated to operations & development under DAO mandate

Vote NOW + read the rationale

54

5:17 PM • Dec 30, 2025

Previously, protocol fees were used for buybacks, with 50% burned and the remaining 50% distributed to $ZFI stakers in the form of liquid $ZFI.

This model had several non-obvious drawbacks, including sell pressure on distributions, buyback front-runs, execution complexity, and indirect value flow to stakers.

The new model is simpler and designed to accelerate growth while giving $ZFI stakers more flexibility.

Starting this month, protocol fees are distributed as follows:

• 100% of protocol fees flow to the DAO treasury

• 50% of protocol fees are then distributed to $ZFI stakers, paid in USDC (monthly, pro-rata)

• The remaining 50% is allocated to protocol operations and R&D under the DAO mandate

Allocating a portion of fees to protocol growth ensures Zyfai has the resources to scale faster and more sustainably. Growth accelerates the flywheel: more AUM → more revenue.

At the same time, monthly USDC distributions from protocol revenue give stakers more flexibility:

• Buy and stake more $ZFI

• Deposit USDC back into Zyfai

Optional automations, such as auto-converting USDC to $ZFI or auto-depositing USDC into Zyfai, may be introduced in the future. The DAO may also adjust allocation percentages through future governance proposals as Zyfai matures.

Previous report is available here:

Zyfai

@ZyfAI_

x.com/i/article/2006…

49

1:31 AM • Jan 1, 2026

January Report

• Snapshot date: January 30, 2026

• Stakers: 2,181

• $ZFI staked: 16,390,427

• Performance fees accrued since last buyback: $2,409

• $ZFI price at the snapshot: $0.01253

• Staking amount at the snapshot date in $ value: $205,372.05

• 50% streaming to $ZFI stakers = $1,204 USDC or 7.37% APY → Available in your staking dashboard: https://zyf.ai/staking

  • TX ID: https://basescan.org/tx/0x81282a8fa0fe422e1ff206b64c8405a02d14f6bfcc3cef1ccbbad7cf453c65d8

• 50% allocated to Ondefy Ltd for protocol operations and development under the DAO mandate = $1,204 USDC

  • TX ID: https://basescan.org/tx/0x87316d08ab7d69aacc1f7d17cec4f753288c092a4a9683999cab007dcf296ce5

How to maximize your monthly staking yield

If you want the highest share of rewards, timing matters.

• The earlier in the month you stake, the larger your position at snapshot time.

• Snapshot happens at the end of every calendar month.

• If you staked in Month A, you receive yield throughout Month B.

• If you unstake before the end-of-month snapshot, you are excluded from the next month's reward stream.

What's next?

In January we:

• Introduced Zyfai's MCP server and Capital Splitting

• Went live with ERC-8004 on mainnet

• Doubled down on the SDK and delivered our first integration partnership with Zoof Wallet

• Got featured in Rhinestone's case study

• Onboarded 9Summits to Zyfai, a leading curator with $93m TVL

• Continued adding new pools and improving the UI and risk.zyf.ai dashboard

• Launched the Phase 3 of the rZFI Incentives Program

In February, we'll double down on integrating Zyfai's agentic yield layer into more products, making the Zyfai Intelligence Layer accessible through multiple AI assistants like Openclaw, and bringing support for more assets and chains to the protocol.

Thanks to everyone who shared valuable feedback with us in January!

Join our Discord community and share your ideas: https://discord.gg/zyfai

Onward!

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

Originally a feature proposed by one of our community members, Splitting represents a new milestone for pushing the boundaries of Autonomous capital. It ensures every Zyfai user who has deposited $10k or more, will always receive a balanced, proportional share of the best opportunities, taking into account the impact their own deposits have on yield.

The Unchecked "Whale Weight"

In a typical Agentic yield optimisation, a simple algorithm might allocate everything to the single highest-APY pool. This creates two issues:

1. Pool Monopolisation: A large deposit can consume a significant portion of a pool's capacity, limiting access for others and concentrating risk.

2. Yield Dilution: A substantial deposit into a smaller pool actively reduces the APY for everyone in that pool, including the depositor. Chasing a raw number can be self-defeating.

The result is capital efficiency at the expense of the ecosystem and, ultimately, itself.

Enter Splitting: Intelligent, Proportional, and Fair Allocation

Splitting evolves our Agent’s existing rebalancing logic. Here’s how it works:

1. Each wallet’s allocation is determined by its proportional weight within its tier. A user with 30% of the tier’s total capital has claim to 30% of a pool's allocable capacity.

2. Our Agents simulate the post-deposit yield using each pool's specific Interest Rate Model (IRM). This means we evaluate the real yield you will earn after your capital’s impact is accounted for, avoiding self-dilution.

3. Every potential pool must still pass our rebalancing checks (which include liquidity depth, volatility, and security) before it is even considered for allocation.

4. Validated pools are ranked by their simulated, true APY. The Agent then allocates capital, filling each top pool up to your proportional share of its capacity before moving to the next best option. This ensures you get a piece of every top opportunity.

5. A rebalance only triggers if the new, split allocation provides a meaningful net improvement over your current position, ensuring we never move capital for negligible gain.

B.By default, splitting is only triggered when it improves your yield. In the coming days, we'll introduce manual splitting, allowing you to force-split your capital across multiple pools purely for risk diversification.

The Result: A Healthier Ecosystem for Everyone

With Splitting, the dynamic changes:

• For the individual user, your capital is deployed across a diversified set of the best, validated opportunities, maximising risk-adjusted returns without degrading them.

• For the community, no single actor can monopolise a prime pool. Access to sustainable yield is democratised within each tier, creating a more resilient and equitable system.

• For the protocols we integrate, they receive balanced, thoughtful capital inflows that support their growth.

Splitting represents our commitment to building an agentic economy where capital efficiency and equitable access are engineered outcomes. This upgrade is now live, operating within Zyfai’s Agentic infrastructure. Deploy your agent today at zyf.ai.

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore ZyFAI | Follow on X | Read blog | Explore

The Zyfai SDK provides the missing infrastructure layer. It packages our battle-tested Agentic engine into a single TypeScript library, enabling any developer to integrate autonomous, self-custodial capital management into their product.

The Core Foundation: Proxy Executor Model

At the heart of our SDK is the Security Proxy System, built around the Proxy Executor Model. This is a new architectural primitive that solves the fundamental delegation problem.

Traditional session keys require users to pre-approve every protocol, pool, and function. Adding a new integration means returning to re-sign. Capital sits idle, yield bleeds away.

Our model changes everything. Users sign a single, powerful policy. Then, our deterministic Proxy Executor enforces it at three levels:

1. Contract validation (the "where")

2. Function selector validation (the "what")

3. Calldata-level filtering (the "to whom" and "how much")

Example policy enabled by our SDK: "USDC can only move back to the user's Safe or to these 10 whitelisted liquidity pools. Transfers to arbitrary addresses are impossible."

The Zyfai agent operates freely within these constraints. New protocols integrate via onchain registry updates, no user signatures required and security is maintained.

Enterprise-Grade Security Stack

The Zyfai SDK brings institutional-grade security to every integration:

1. TEE-Protected Signing via EigenCompute KMS: Session keys are generated and used exclusively within a Trusted Execution Environment. The session private key signature never leaves the secure enclave and remains inaccessible to operators, developers, or external services.

2. Deterministic, Verifiable Execution: Every action follows deterministic rules (not unpredictable AI). Each rebalance generates a ZK proof of correct execution, anchored to an onchain identity via ERC-8004 integration.

3. Comprehensive Audits: The entire stack has been audited end-to-end by Sherlock, with no outstanding issues.

   ---

What You Can Build with the Zyfai SDK

Our SDK transforms what's possible for developers across the ecosystem:

1. For Wallet Teams: Embed a "Yield " module. Users toggle autonomous yield optimization with one click. Their idle stablecoins across chains automatically rebalance to optimal pools, all while maintaining full self-custody.

2. For Crosschain Bridges & Liquidity Networks: Implement autonomous liquidity management that continuously rebalances based on real-time demand.

3. For Neobanks & Treasury Platforms: Offer "smart treasury" functions where idle corporate stablecoins earn verified, risk-adjusted yield. Compliance-friendly constraints are baked into the policy engine, with full audit trails for every transaction.

4. For Agentic Developers: Build specialised agents that interact trustlessly with the Zyfai ecosystem. Our SDK provides the secure delegation layer, ERC-8004 identity framework, and verifiable execution proofs that enable true agent-to-agent coordination.

   

   Zyfai

   @ZyfAI_

   Introducing Zyfai SDK.
   
   With over $1.2B in Agentic Volume processed, Zyfai's proven stablecoin yield engine is now available for every @ethereum developer to integrate.
   
   Wallets. Exchanges. Neobanks. Agents. Anything with idle stablecoins.
   
   No need to re-invent the wheel.

   

   241

   7:39 PM • Dec 23, 2025

   ---

The Verifiable Advantage

Every integration using the Zyfai SDK contributes to a transparent, auditable reputation system. Each action is:

• Deterministic (based on clear rules, not AI randomness)

• ZK-proven (cryptographically verified correct execution)

• ERC-8004 anchored (building onchain reputation over time)

Partners and users can independently confirm that operations follow defined policies.

Composable Future, Ready Today

The Agentic Economy will emerge from thousands of specialized solutions interacting through shared infrastructure.

The Zyfai SDK provides that shared infrastructure:

• Self-custodial foundation (built on Safe smart accounts)

• Crosschain execution (live on Base, Arbitrum, Plasma, Sonic)

• Gas-optimized operations (with sponsored transaction support)

• Full customization (from protocol whitelists to risk parameters)

We've processed over $1.3 B in volume to stress-test this system, building infra robust enough for institutional use but accessible enough for any developer.

Start Building the Future

The infrastructure for the Agentic Economy exists. It's a working, audited, production-ready SDK that you can integrate today.

Whether you're building the next generation wallet, optimising treasury management, creating cross-chain services, or creating new autonomous agents, the Zyfai SDK gives you the secure delegation layer you need.

Explore the documentation, review the audit reports, and start building: sdk.zyf.ai

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore ZyFAI | Follow on X | Read blog | Explore Docs

December also marked a key milestone for Zyfai, as total AUM (Assets Under Management) surpassed $10M. This reflects growing confidence in Agent-based, automated yield execution.

Moreover, the past month introduced several key product features that lay the foundation for Zyfai's long-term growth as an institutional-grade agentic DeFi solution:

• New Security Proxy System with EigenCompute KMS integration, enabling a granular calldata-aware filtering and UX improvements

• Verifiable Agents, making every rebalancing transaction verifiable via ZK proofs stored in the ERC-8004 Validation Registry

• Zyfai SDK, making Verifiable Agents accessible to Ethereum builders

• Nested Safe implementation, allowing institutions to run agentic infrastructure on top of their existing multisig setups

Below is a summary of the key metrics that defined Zyfai's performance in December.

Zyfai Overview

Zyfai improves capital efficiency through personalized Safe Smart Wallets (Safe7579) combined with deterministic, rule-based rebalancing Agents.

Each Agent evaluates 20+ rebalancing checks across DeFi blue-chip money markets and newer yield primitives. A trustless, session-key design ensures every Agent action is permissioned, constrained, and fully defined by what the user allows the Agent to do.

Across chains and wallets, Zyfai has now:

• $10M+ AUM

• $1.25B+ in cumulative Agentic volume

• 11,000+ Agents

This foundation powers Zyfai's fully autonomous yield engine.

+73.42% Yield Outperformance in December

Between December 1 and December 31, Zyfai Agents continuously monitored yields across all integrated pools and protocols. When a higher risk-adjusted stablecoin yield appeared, capital was reallocated autonomously, often executing in under seconds.

December Performance:

• Average Zyfai Agent APY: 9.49%

• Average Static Pool APY: 5.47%

• Net Yield Gain: +73.42% vs. static DeFi

While absolute yields declined across the ecosystem in December, Zyfai's dynamic allocation model continued to outperform passive, single-protocol strategies by a meaningful margin.

Native Yield Benchmarks by Wallet Size

To demonstrate real-world yield behavior across wallet sizes, here are the native (non-boosted) APYs and rebalance counts for actual Zyfai wallets tracked through DeBank.

$1.5M Wallet

• APY September: 8.21%

• APY October: 7.45%

• APY November: 6.31%

• APY December: 5.64%

• Total Rebalances: 103

• Wallet Link

$100K Wallet

• APY September: 12.21%

• APY October: 15.18%

• APY November: 8.31%

• APY December: 6.16%

• Total Rebalances: 147

• Wallet Link

$40K Wallet

• APY September: 16.56%

• APY October: 9.81%

• APY November: 12.39%

• APY December: 9.3%

• Total Rebalances: 60

• Wallet Link

Insights:

• Smaller wallets often achieve higher relative APYs due to faster capital cycling.

• Larger wallets benefit from lower risk, deeper liquidity pools, and consistent performance.

• Rebalance frequency scales with volatility and size.

This gives users a clear, transparent look at Zyfai's onchain yield behavior across different capital bands.

AUM Reaches $10M+ Across Chains

According to DefiLlama and Dune data, Zyfai's total AUM peaked above $10M in December, supported by steady inflows and strong capital retention.

AUM by chain:

• Base: ~$7.5M

• Arbitrum: ~$2.2M

• Plasma: ~$278K

• Sonic: ~$202K

Agents Deployed & Rebalancing Activity

December saw continued expansion in Agent deployment and execution activity, powered by Smart Rebalancing v.2.

Network-level metrics:

• Total Agents Deployed: 11,356

• Total Funds Moved: $1.25B

• Total AUM: $10.2M

By chain:

Base

• Agents Deployed: 4,659

• Rebalancing Transactions: 63,859

Arbitrum

• Agents Deployed: 1,598

• Rebalancing Transactions: 32,056

Plasma

• Agents Deployed: 637

• Rebalancing Transactions: 5,540

Sonic

• Agents Deployed: 3,859

• Rebalancing Transactions: 33,818

Across all chains, Zyfai Agents continued executing autonomously, ensuring capital remained allocated to the most efficient yield sources available.

Yield Strategy

Zyfai's yield strategy has now been running continuously for over seven months.

Rather than relying solely on traditional money markets, Zyfai expands the opportunity set by incorporating:

• Newer protocols

• Innovative yield primitives

• Yield tokenization

• Structured and leveraged vaults

This approach enables users to access a broader spectrum of yield sources while maintaining disciplined, risk-aware allocation.

Underlying protocols integrated include Aave, Morpho, Fluid, Compound, Moonwell, Spark, Euler, Silo, Harvest, Wasabi.xyz.

$ZFI Buyback & Burn + Native Staking Yield Program

In December, Zyfai executed buyback using performance fees collected since the previous buyback.

To strengthen rewards, $ZFI obtained from early rZFI redemptions was added to the total pool.

• Snapshot date: December 29, 2025

• Stakers: 2,099

• $ZFI staked: 15,132,638

• Performance fees accrued since last buyback: $2,890

• 231,865 $ZFI purchased
  TX ID: https://basescan.org/tx/0x3e9bd4e2a84925d00d2b5ca91611bbc8a09d240bc3e19daf80f7a7b8852f05de

• 32,611 $ZFI added from early rZFI redeeming

Total $ZFI to burn and stream to stakers: 264,476 $ZFI. Of those:

• 132,238 $ZFI were burned

• 132,238 $ZFI are being streamed to stakers over January, giving them 11.82% APY

Full report is available here: https://x.com/ZyfAI_/status/2006433120682492026

TL;DR: December Summary

• +73.42% yield outperformance vs. static strategies

• 9.49% average Zyfai Agent APY

• $10M+ peak TVL in December

• $1.25B+ cumulative Agentic volume

• 11,000+ Agents deployed

• Institutional-grade infrastructure delivered: Security Proxy System, Verifiable Agents with ZK proofs and ERC-8004, Nested Safe, and SDK

Looking Ahead

As Zyfai enters the new year, the focus remains on improving execution, expanding cross-chain automation, and refining risk-aware yield strategies.

Over the past months, Zyfai has laid the foundation through the rollout of core infrastructure designed for scale and institutional adoption, positioning the protocol for accelerated growth in the year ahead.

Whether users prioritize maximum performance or prefer more conservative, low-risk DeFi yields, Zyfai Agents operate continuously, reallocating, compounding, and optimizing across chains on their behalf.

Ready to earn smarter?
Deploy your Agent on Zyfai and let it operate with the speed, precision, and reliability of next-generation Autonomous Finance.

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore Zyfai | Follow on X | Read blog | Explore Docs

Zyfai is among the first DeFi protocols that have fully integrated the ERC-8004 standard in the very core of the product.

The Trust Problem No One Has Solved

Every Agent today faces the same fundamental challenge: how do you prove you can be trusted?

To date, there's no single Point-of-Trust for Agents. Users do their own research, collecting info bit by bit from CT, testimonials, docs, marketing promises, onchain sleuthing. It takes time and testing to confirm that an Agent is actually doing what it claims.

This is the bottleneck holding back the entire Agentic Economy.

What Does ERC-8004 Bring to the Table?

ERC-8004 is a new Ethereum standard that creates three onchain registries for Agents:

• Identity Registry: Every Agent gets a unique onchain identity, built on ERC-721.

• Reputation Registry: Users can review Agents, building a transparent onchain reputation.

• Validation Registry: Agents can anchor proofs of their actions directly to their identity, creating an auditable trail that anyone can inspect.

The result is hard to overestimate: ERC-8004 brings a foundational layer for trustless Agent-to-Agent communication.

For a deep technical dive, we recommend checking the article from @yq_acc:

YQ

@yq_acc

x.com/i/article/1985…

398

12:06 • 3 Nov 2025

Why This Matters for You

For Users: You can finally verify that the Agent managing your capital has a track record of correct behavior.

For Agents: Reputation becomes a competitive advantage. Agents that behave correctly accumulate provable trust and more agentic “clients”.

For the Industry: ERC-8004 unlocks Agent-to-Agent communication layer. When Agents can verify each other's reputation, they can interact trustlessly and autonomously. This is the infrastructure layer the Agentic Economy has been waiting for.

How Zyfai Uses ERC-8004 in Production Today

The core problem we set out to solve was simple to describe but hard to execute:

How can you truly trust an Agent with direct access to your capital?

At Zyfai, we refused to accept "just trust us" as an answer. We built a system where trust is not required because verification is built in.

In short, our Agents are deterministic, trustless, and verifiable.

ERC-8004 is not theoretical for us. It is already part of our core architecture.

Zyfai

@ZyfAI_

x.com/i/article/1996…

72

15:25 • 3 Dec 2025

Deterministic Logic: The Foundation

Unlike Agents powered by LLMs, whose outputs can vary and surprise (sometimes in a bad way), every action your Zyfai Agent takes is the result of deterministic rules. If a specific set of onchain conditions is met, a specific action is authorized. If not, nothing happens.

This rule-based architecture creates something AI agents cannot provide: a system whose operations can be definitively proven.

ZK Proofs: Verification Without Privacy Trade-offs

Deterministic logic is necessary, but not sufficient. The next step is proving that this logic is followed correctly in every transaction, for every user.

This is where Zero-Knowledge proofs transform the model.

For every rebalancing action, your Zyfai Agent generates a cryptographic proof. This proof validates execution correctness without revealing the specific parameters, preventing bad actors from analyzing and front-running the Agent's strategy.

Hash link:

https://gateway.pinata.cloud/ipfs/bafkreigimcdjbgmzpvrbv3qazon5o4jr5dnrm25xb2sowzm4dg76vdef5q

Once this hash is approved from the verifier contract it is uploaded to the validation registry. This hash can then be found as a string within the input data onchain.

BaseScan:

https://sepolia.basescan.org/address/0x0868fefa0e5f254fbac27ef8f82364f06fd4c47f

ERC-8004: Anchoring Reputation Onchain

Each ZK proof of a correct rebalance is permanently anchored to the Zyfai Agent's onchain identity through the ERC-8004 Validation Registry.

The result is not just a verified transaction, but a growing onchain history of correct behavior. Over time, this creates a reputation that can be audited by humans and Agents.

Don’t trust, verify.

What Comes Next: Making Verifiable Agents Understandable and Composable

Our next step is an improved ERC-8004 implementation focused on transparency and usability. The goal is not just to prove that checks were executed correctly, but to make those checks understandable at a glance.

Starting today, each ZK proof shows the result of computation and a description for each rebalancing check, making it more transparent and human-readable.

MCP Integration: Agents That Talk to Everything

We are also building MCP (Model Context Protocol) endpoints into the product.

What does this mean? Users will be able to ask their AI assistants questions like "What are the best stablecoin yields right now?" and receive accurate, real-time data sourced directly from Zyfai.

This turns Zyfai into an intelligence layer for the broader AI ecosystem, a source of trusted, verified yield data for the entire market.

The Bigger Picture

We’re building toward a future where networks of Verifiable Agents interact seamlessly, executing complex autonomous strategies that can be verified onchain by anybody.

ERC-8004 finally brings the trust and communication layer the Agentic Economy has been waiting for.

With the rise of AI, the line between web2 and web3 is gradually fading. ERC-8004 makes onchain Agents more accessible to both web2 end users and the Agents acting on their behalf, bringing the trust and communication layer the onchain Agentic Economy has been waiting for.

ERC-8004 going live on mainnet on January 16 is a major step toward the future we envision, and Zyfai is already there with ERC-8004 live in production.

Github Link:

https://github.com/ondefy/erc8004-implementation

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore ZyFAI | Follow on X | Read blog | Explore Docs

Session Keys provide solid security guarantees. They allow users to delegate limited authority to autonomous Agents without exposing their master keys. On paper, this is enough to enable agentic DeFi. In practice, it hasn't been.

At Zyfai, we discovered that the biggest obstacles were not cryptographic weakness, but operational friction and inaccurate control. Our goal was to evolve Session Keys with a primitive that preserves its security guarantees, while making them usable at scale, and containing the fine-grained execution controls that many implementations of Session Keys still lack.

As part of this effort, Zyfai is integrating EigenCompute KMS (EigenCloud), moving Session Key signing into a Trusted Execution Environment (TEE) that is inaccessible to operators, developers, or external services.

The migration will be rolled out gradually. Users will be prompted to migrate once a notification banner appears in the dashboard.

The Real Problems With Session Keys

1. Operational Friction Breaks Delegation

Most session-key systems require users to explicitly authorize every protocol, pool, and function upfront.

As Agents become more capable, this turns into hundreds of permissions: high gas costs during activation, long and opaque signing flows, and users abandoning setup or never updating keys.

While security remains intact, the system slowly becomes unusable.

2. Re-Signing Session Keys Kills Yield

Whenever a new protocol or pool is integrated, users are often required to return to the dashboard to renew permissions and sign a new Session Key.

Most users don't. The result is idle capital and missed yield, even though the Agent logic itself is sound.

3. "Where" Is Checked, "What" Often Isn't

Many session-key implementations stop at contract-level whitelisting:

"This Agent may call the USDC contract."

What they frequently do not enforce is how that contract can be used. Without calldata-level restrictions, an Agent that is allowed to interact with a token contract can often transfer funds to arbitrary addresses and approve unlimited spenders .

This creates a structural gap that makes Session Keys insufficient for the high-stakes environment of Agentic DeFi, where millions are at play.

Zyfai's Answer: The Security Proxy System

Zyfai's new Security Proxy System preserves the same core security assumptions as modern Session Keys, namely scoped authority and self-custodial control.

It relocates enforcement into a deterministic execution layer that for the first time eliminates repeated user approvals, enables specific, calldata-aware policies, while reducing gas costs.

Examining The New Security Proxy System

Executor Module (on Safe)

Installed once on the user's Safe Smart Account, this module acts as the secure entry point for Agent execution, using established and audited patterns.

Stateless Security Router

When triggered by the Executor Module, the Router executes transactions as the user's account, while enforcing a strict policy:

• Target contract validation

• Function selector validation

• Calldata-level filtering for asset movement

Because the Router is stateless, it introduces no storage risk and does not custody funds.

Onchain Registry

The Registry defines, in real time which contracts are allowed, which function selectors are valid, and which addresses assets may be transferred to.

This allows extremely fine-grained constraints. For example:

• A USDC transfer may only send funds: Back to the user's Safe Smart Account, or to explicitly approved DeFi pools

• Transfers to arbitrary EOAs are rejected at execution time

• Even if the Agent logic is compromised, value flow remains constrained

This level of calldata-aware filtering is not available in many session-key SDKs today, and is critical for agentic systems that must operate continuously and autonomously.

Hardening the Signing Layer with EigenCompute KMS

To further strengthen the operational security of our agents, Zyfai is moving the session-key signing infrastructure to EigenCompute KMS.

Session keys will be generated and used entirely inside a Trusted Execution Environment (TEE):

• Session private key signature is performed inside the enclave

• The signer is not accessible to operators, developers, or external services

• Signing is only possible through predefined, verified execution paths

This significantly reduces the operational attack surface by eliminating key exposure at the infrastructure level.

Audited by Sherlock

While Zyfai is a modular product, with each individual module audited and publicly available in our audit documentation, it's just as important to ensure that all modules work together securely.

That's why, with the introduction of the new Security Proxy System, Zyfai made the decision to audit the entire product end to end as an additional step toward security and transparency.

As a result, the Security Proxy System, along with the rest of the Zyfai stack, has been audited by Sherlock, with no outstanding security issues identified.

The full audit report is available here: audit report.

TL;DR: The New Security Proxy System

Ultimately, Zyfai's Security Proxy System offers a significantly improved user experience with enhanced execution guarantees.

While Zyfai doesn't claim a fundamentally stronger cryptographic primitive than Session Keys, it improves the fragile and outdated delegation process by implementing calldata-level enforcement and eliminating user friction.

This means users only sign once; protocols can be added without interruption; transfers are constrained at the byte level; and, security doesn't depend on users constantly re-approving the future. Essentially, enabling Agents to operate safely, especially when users are offline.

Action required: users will be prompted to migrate when a notification banner appears in the dashboard.

About Zyfai

Zyfai gives you self-custodial access to autonomous low-risk DeFi. Our customizable rule-based Agents transform your idle capital into productive assets, rebalancing between curated opportunities.

The result is sustainable and risk-adjusted yield, where your capital is always working and under your control.

Explore ZyFAI | Follow on X | Read blog | Explore Docs

At Zyfai, we've built a system that does the analytical work for you. Here's how we select and manage yield opportunities, from initial vetting to real-time rebalancing and institutional-grade capital protection.

Layer 1: Rigorous Protocol Selection

Before any protocol touches your funds, it must pass Zyfai's comprehensive assessment conducted by our team of quants:

Proven Track Record

We prioritize protocols with battle-tested histories. How have they performed during market stress? Have they maintained security through volatility?

Established names like Aave and Compound form our foundation because they've earned trust over time. As standard, we apply a "Lindy effect" filter, favoring protocols that have operated securely for 12, 24, or ideally 36+ months, with growing TVL and user bases.

Security First

We dig deeper than audit checkboxes. Our team analyzes the quality of auditors, requiring reviews from multiple renowned firms where possible, with no unresolved critical findings.

We scrutinize the recency of audits and a protocol's immutable design, prioritizing minimal upgradeability.

In our eyes, a protocol's response to past incidents and a clean exploit record for over a year are true indicators of a genuine security culture, which far outweighs compliance paperwork.

Yield Source Analysis

This is Zyfai's core differentiator. We look for more than APY numbers, instead we understand exactly how each protocol generates yield. Is yield coming from lending fees? Trading volume? Leveraged positions?

We examine the economic engine behind each opportunity, focusing on sustainable fee-based models rather than temporary incentives.

Recent DeFi failures have shown that poor economic design can be just as dangerous as security vulnerabilities. We ensure any integrated pool is permissionless, has deep liquidity for smooth exits, and does not rely on fragile mechanics like withdrawal queues.

If we can't trace the yield source clearly, we don't integrate the protocol.

Layer 2: Continuous Protection via Rebalancing Checks

Even with vetted protocols, every single rebalance must pass several real-time checks:

1. TVL & Liquidity Safety: We measure the total value locked and only allocate to pools where your position represents a fraction of total liquidity. This prevents market impact and ensures we can exit a 100% position with minimal slippage. We continuously monitor pool depth and automatically exit if liquidity drops below safe thresholds.

2. Meaningful APY Improvement: We ignore minor yield fluctuations, only moving your funds when the APY improvement is substantial and worthwhile.

3. Pool Stability: We analyze weeks of historical data to avoid volatile, unpredictable yields in favor of stable, sustainable returns.

4. Cost-Benefit Analysis: We calculate exact transaction costs versus potential gains, ensuring every move is economically rational.

5. Liquidity Monitoring: We proactively withdraw from crowded money markets before utilization becomes dangerous, keeping your capital fluid.

Furthermore, we continuously track the peg stability of all stablecoins in our pools. If a stablecoin deviates 3% from its peg, we trigger warnings. At 5% deviation, we automatically rebalance away from affected pools to protect your position. This is complemented by our requirement for protocols to use robust, tier-1 oracle price feeds.

Meanwhile, for complex vault structures like Euler, we map the entire hierarchy: from main vault to subvault to underlying collateral, ensuring we understand your true exposure and avoid concentrated risks.

Layer 3: Secure and Dependable Tech Stack

Zyfai's fully autonomous tech stack is built on top of four key operational pillars:

True Self-Custody

This is an important advantage: your funds never leave your Safe7579 Smart Account. No shared vaults, no poolable contracts. You maintain direct access and complete control of your funds throughout. Moreover, you can always access your Smart Account via Safe UI.

Intent-based Routing and Trustless Settlement

With the introduction of "One Balance. All Chains. Best Yields", Zyfai now leverages Warp from Rhinestone as a secure intent routing and execution engine, with Across as an industry-standard trustless settlement layer.

Institutional-Grade Incentives

Zyfai has forked the fully audited Euler's rEUL smart contract to deliver top-tier yield distribution for its rZFI incentives.

Gas-Free Execution

Together with Rhinestone, Zyfai covers all bridge and gas fees associated with cross-chain atomic rebalancing. Meanwhile, through partnerships like the ArbiFuel program by Arbitrum, we work to cover all rebalancing costs. You capture 100% of the net yield with no erosion from transaction costs.

Layer 4: Personalized Strategy

While Zyfai handles security and vetting, you control the strategy. Your Agent adapts to your preferences:

• Select Strategy: choose between capital preservation (Safe), yield maximization (Yieldor), or create your own Agent strategy

• Select Chains and Protocols: with Session Keys, Zyfai enables you to grant hyper-specific permissions that only allow the Agent to interact with the protocols you pre-approved

• Select Specific Pools: dive deeper into customization and choose the specific pools in each protocol that you want your Agent to interact with.

Two users with identical deposits might have completely different strategies, one prioritizing stability across blue-chip protocols, another pursuing higher returns through carefully vetted emerging opportunities.

For deeper analysis, our risk.zyf.ai platform provides institutional-grade risk scoring developed by our quantitative team (ex-Pictet). Use it to inform your decisions, as we always encourage independent research.

Layer 5: Intelligent Capital Management

Zyfai's Smart Rebalancing Engine v.2 makes sure to adapt to your portfolio size:

• Large deposits (100K+) receive frequent attention, up to 12 rebalances daily

• Mid-size portfolios (10K-100K) balance efficiency with cost

• Smaller positions maintain consistent outperformance with optimized frequency

The system automatically adjusts to ensure optimization costs never outweigh benefits of yield earned. Additionally, $ZFI stakers receive a 2x rebalancing frequency boost when staking more than 200,000 $ZFI.

The Result: Confident Yield Earning

While other protocols chase the highest numbers, Zyfai always pursues the most secure risk-adjusted returns. Our layered approach combines human expertise with automated efficiency, creating a set-and-forget experience where your capital works protected by multiple defense systems.

This is how Zyfai chooses opportunities: through rigorous analysis, continuous monitoring, and adaptable execution. So you can earn competitive yields without becoming a full-time analyst.

About Zyfai

Zyfai is a fully automated solution that takes care of everything: from gathering information to taking onchain actions.

The Zyfai Agent dynamically allocates your funds across whitelisted protocols and optimizes for the highest possible APY.

By default, the Zyfai Agent is set to auto-compound, allowing you to earn the best yield possible and enhance your capital efficiency.

Explore ZyFAI | Follow on X | Read blog | Explore Docs

But the pursuit of capital efficiency has forced a difficult choice. To generate automated yield, assets typically needed to be moved out of secure, multi-signer treasuries and into new, separate contracts. This fragmented capital, introduced new counter-party risks, and created operational friction for professional curators and institutions.

That trade-off ends today.

Zyfai now introduces direct support for nested Safe Smart Accounts. This allows curators, institutions, and multisig owners to deploy a dedicated yield-generating Safe within their existing treasury setup. A Zyfai Agent can then optimize capital from this nested account, all under full self-custody, without ever compromising the security of the primary treasury.

Why a Nested Account Changes Everything

The question evolves: why deploy a nested account instead of just using a new one? The answer lies in operational integrity and security granularity.

A nested Safe is not an isolated account; it is a purpose-built extension of your existing treasury. It allows for:

• Unbroken Security Models: Your main multi-signer governance and withdrawal policies remain untouched and paramount.

• Capital Segmentation: Yield-earning assets can be strategically allocated and managed separately from core treasury holdings.

• Plug-and-Play Automation: capabilities like autonomous yield optimisation can be added as a modular function to your existing secure base, much like installing a trusted application.

This approach meets sophisticated capital where it lives, unlocking the potential of secure assets without asking them to abandon the safety of their proven home.

The Mechanics of Secure, Autonomous Yield

How does it work while upholding the highest security standards? The process is streamlined and secure:

1. Connect & Deploy: Connect your primary Safe Smart Account to Zyfai. Deploy a new, nested Safe Smart Account in seconds, directly linked to your main treasury.

2. Allocate Capital & Set Policy: Deposit USDC from your main Safe into the nested account. Define your strategy by whitelisting protocols and setting risk parameters.

3. Authorize with Session Keys: Grant the Zyfai Agent temporary, scoped permissions via Session Keys. These keys only allow actions on the nested account and only with your pre-approved protocols.

4. Activate Autonomous Efficiency: The Agent gets to work. It continuously scans for optimal yield opportunities across whitelisted protocols. When its rule-based engine identifies a superior, risk-adjusted move that passes all safety checks, it executes a rebalance from within the secure, nested environment.

Unlocking New Strategic Opportunities

This architecture opens three key pathways for professional capital:

• For Curators & Vault Managers: Effortlessly integrate Zyfai as a powerful, automated yield module within your own vault strategies, enhancing returns for your users.

• For Institutions & DAOs: Make treasury capital productive for the first time without operational headaches or security compromises. Generate yield on idle assets while they remain under the full protection of your institutional multisig.

• For Zyfai as a Curator: This infrastructure enables the creation of new, automated vault strategies on leading platforms, bringing secure, high-efficiency yield to a broader ecosystem.

Ready to eliminate the trade-off between security and efficiency? Connect your Safe Smart Account and deploy your nested strategy at zyf.ai.

About Zyfai

Zyfai is a fully automated solution that takes care of everything: from gathering information to taking onchain actions. The Zyfai Agent dynamically allocates your funds across whitelisted protocols and optimises for the highest possible APY.

By default, the Zyfai Agent is set to auto-compound, allowing you to earn the best yield possible and enhance your capital efficiency.

Explore Zyfai | Follow on X | Read blog | Explore Docs

How can you truly trust an agent with direct access to your capital?

At Zyfai, we're determined to redefine trust by creating autonomous DeFi that is completely secure and trustless. That is why we're taking a decisive step: integrating Zero-Knowledge (ZK) proofs and the ERC-8004 standard directly into the core of our Yield Agents.

Unlike agents powered by LLMs, whose outputs can vary, every action a Zyfai Agent takes is the result of predefined conditions. This means that no matter what, every move your Agent makes follows a specific, verifiable set of rules. And now, we're letting you check this for yourself.

In doing this, we're shaping a new standard of transparency and reliability for the entire Agentic Economy.

Building for Secure and Verifiable Agentic DeFi

Too often, generative AI agents make unpredictable, untraceable decisions. This lack of verifiable integrity acts as a significant roadblock, preventing the DeFi industry from forming a mature, blossoming, autonomous layer.

Our system is built on deterministic rules: if a set of verifiable onchain conditions is met, then a specific action is authorized. This logical structure is the bedrock of fairness and auditability. It guarantees that the same rigorous process is applied consistently, ensuring no single user receives preferential treatment or is exposed to undue risk based on arbitrary code.

This rule-based architecture ensures consistency, and creates a system whose operations can be definitively proven.

Promoting Integrity: Verify Each Agent Action with ZK Proofs

Deterministic logic is a necessary foundation, but it is not sufficient for trust. The critical next step is providing irrefutable proof that this logic is followed correctly in every transaction, without compromising the system's security.

This is where ZK proofs transform the model.

For every rebalancing action, the Zyfai Agent can now generate a cryptographic proof. This proof attests to one crucial fact: that the action taken was the correct and exclusive output of its internal rule engine, based on the authenticated state of the blockchain.

The verification is elegantly simple. A standalone verifier contract can validate this proof, returning a definitive "yes" or "no" on the transaction's integrity. The complex internal checks remain private, but their correct execution becomes a public, verifiable fact.

Your security and yields are protected by privacy. Because ZK proof validates correctness without revealing the specific parameters of our rebalancing checks (like TVL safety thresholds or minimum yield improvement), it prevents bad actors from analyzing and front-running the Agent's strategy.

The Identity of Accountability: Anchoring Reputation with ERC-8004

A single verified transaction is powerful, meanwhile a historical database of verified actions is transformative.

This is the role of ERC-8004.

Each ZK proof of a correct rebalance can be permanently anchored to the Zyfai Agent's onchain identity through this standard. It moves the narrative from beyond "we executed a transaction" to "we are building a verifiable history of integrity."

This creates an immutable, tamper-proof reputation. Users and, critically, other agents can audit an entire history of provably correct actions. This is the missing link for autonomous Agent-to-Agent commerce, enabling trustless DeFi at scale.

Fairness, Security, and a Verifiable Future

The integration of ZK proofs and ERC-8004 establishes a new benchmark for what an autonomous financial agent should be.

• Guaranteed Fairness: The system is mathematically unbiased. The same proven checks protect a $100 deposit and a $1,000,000 deposit, ensuring equitable treatment for all users.

• Security Through Verification: We move the industry from "trust, but verify" to "verify, then trust." Users delegate capital based on cryptographic evidence, not marketing promises, significantly reducing systemic risk in the agentic ecosystem.

Building the Trust Layer for the Agentic Economy

The true potential of autonomous finance will only be unlocked when trust is solved. By combining a deterministic rule-based engine with ZK-proof verification and an onchain reputation via ERC-8004, Zyfai is constructing that essential trust layer.

We envision a future where networks of verifiable agents interact seamlessly, executing complex strategies with security and fairness that can be audited by anyone. This is the next evolution of DeFi: automated and accountable.

About ZyFAI

Zyfai is a fully automated solution that takes care of everything: from gathering information to taking onchain actions. The ZyFAI Agent dynamically allocates your funds across whitelisted protocols and optimises for the highest possible APY.

By default, the Zyfai Agent is set to auto-compound, allowing you to earn the best yield possible and enhance your capital efficiency.

Explore ZyFAI | Follow on X | Read blog | Explore Docs

For years, DeFi has dreamt of a borderless financial system:

What if you could access the best yields across every chain from a single position, without ever thinking about bridges, gas, or network selection?

This isn't a distant future. It's available on Tuesday via Zyfai's "One Balance. All Chains. Best Yields." The first truly autonomous yield optimisation upgrade that transforms how capital moves across chains.

Why This Changes Everything

The fundamental breakthrough of "One Balance. All Chains. Best Yields" is chain abstraction for yield generation. While others build bridges between chains, Zyfai is removing the concept of chains altogether from the user experience.

• One Balance: deposit once, access yield opportunities across chains.

• Agentic Strategy: choose networks/pools; your Agent handles rebalancing.

• Cross-Chain Atomic Rebalancing: funds are continuously optimized across all chains for best available yield.

• Gas/Bridge Fee Sponsorship: fees are abstracted away from end users and covered by Zyfai and Rhinestone.

• Tech stack: Warp by Rhinestone as a blazing-fast intent routing and execution engine with Across as battle-tested, trustless settlement layer for intent-bridge operations.

Your capital becomes a single, fluid entity that autonomously seeks the highest risk-adjusted returns across the entire multichain landscape. Meanwhile, the infrastructure required for this (bridging, gas payments, slippage protection) becomes invisible, abstracted away into an effortless, no-clicks experience.

The Architecture of Autonomy

At the core of "One Balance. All Chains. Best Yields" lies a sophisticated technical stack designed for security, efficiency, and absolute user control.

Self-Custodial Foundation

Unlike solutions that store keys in centralized providers or Trusted Execution Environments (TEEs), we never have access to your funds.

Every Smart Account is built on a Safe7579 multisig smart account that you fully control. You can always access your smart account via Safe UI and use it just like your EOA wallet: withdraw and deposit funds, swap, bridge, connect to other dApps, and so on.

It is your wallet and your keys.

Fee-Free Execution

Through Zyfai’s partnership with Rhinestone, we've eliminated the two biggest barriers to cross-chain DeFi: gas costs and slippage. Every cross-chain rebalance, every compound, every optimization is sponsored, meaning you capture 100% of the yield without erosion from transaction costs.

Intelligent Yield Discovery

Our system employs quantitative analysis across multiple dimensions:

• Our team of dedicated quantitative analysts (ex-Pictet) continuously model and validate opportunities

• Continuous monitoring of native yields across Base, Arbitrum, Plasma, Sonic, and expanding chains

• Data driven prediction of yield sustainability and risk factors

With over 33 pools integrated, Zyfai offers the largest number of yield opportunities on the market. Essentially, we identify and capture the best native yield opportunities before they become widely known.

Features Designed for Real Users

Flexible Capital Management

Execute partial withdrawals from any chain while your Agent keeps the rest of your capital working for you.

Your funds stay liquid, self-custodial, and fully accessible whenever you need them, while Zyfai Agents continuously reallocate the remaining balance to the highest-yield opportunities across chains.

Flawless Auto-Compounding

Zyfai’s auto-compound mechanism has been stress-tested across market conditions without a single failure. Rewards are automatically harvested and redeployed, ensuring maximum capital efficiency without manual intervention.

Prefer not to auto-compound? Disable it and stack rewards, then withdraw them anytime.

Granular Strategy Control

Choose from preset strategies or customise every aspect of your yield generation:

• Protocol whitelists and risk parameters

• Chain preferences and allocation limits

• Rebalancing thresholds and frequency settings

What makes this possible is the implementation of Session Keys module by Rhinestone that provide temporary access to your smart account with specific permissions. The strength of Session Keys lies in their ability to limit actions based on predefined permissions.

Your Agent have precisely scoped permissions to execute rebalances on your behalf across protocols you’ve approved, but never have withdrawal authority over your funds.

The Technical Magic Behind-the-Scenes

"One Balance. All Chains. Best Yields" leverages Rhinestone‘s Warp protocol for intent-based cross-chain execution, with Across providing battle-tested settlement layer. The entire cross-chain rebalancing process completes in under 1.5 seconds with guaranteed, MEV-protected execution. No slippage, no gas cost.

Here’s how it works:

Step 1. Agent scans all supported protocols across all supported chains

The ZyFAI Smart Rebalancing v.2 Engine continuously monitors every supported protocol across all integrated chains:

• If the current position is still optimal, funds stay put.

• If a better yield is detected, the Agent initiates a rebalance.

Step 2. Intent is created, Warp executes cross-chain transaction

The Agent creates an intent, and Warp executes it using Across as the settlement layer:

• Warp finds the cheapest/fastest route and guarantees atomicity/determinism (no partial fills or race conditions).

• A relayer pre-funds the destination chain, delivering the exact output amount with slippage-free, MEV-protected execution.

• The Across settlement layer handles relayer repayment on origin chains; Warp coordinates this under the hood.

All fees are covered by Zyfai and Rhinestone.

Step 3. Funds are deployed

Once funds arrive, the Agent automatically allocates them to the selected protocol.

Total time for cross-chain rebalancing: under 1.5 seconds.

The Security Advantage: Intent-Based Architecture

While most cross-chain solutions rely on message-based bridging with inherent security trade-offs, Zyfai leverages a fundamentally more secure approach through intent-based execution.

Traditional Bridges vs. Intents

Message-based bridges require real-time security of the messaging layer, creating constant attack vectors. In contrast, intent-based architecture separates the urgent user need (instant execution) from the complex security problem (cross-chain verification).

How It Works: Security Through Separation

• Instant Execution: Relay nodes pre-fund destination chains, delivering guaranteed outcomes in under 1.5 seconds

• Secure Verification: The actual cross-chain settlement happens afterwards using the most secure methods available (canonical bridges, ZK proofs, or optimistic verification)

• Atomic Guarantees: During cross-chain rebalancing, the engine claims assets on the origin chain first, with the destination chain fill executed immediately after, ensuring no partial fills and no race conditions.

Enhanced Protection

This architecture provides:

• MEV-protected, slippage-free execution

• Elimination of bridge hack risks during rebalancing

• Economic security through Across' battle-tested settlement layer

• Future-proof verification that improves as new security methods emerge

The result: cross-chain rebalancing with enterprise-grade security, zero user-paid fees, and guaranteed execution outcomes.

You can find more details about the technical implementation in our docs.

About Zyfai

Zyfai is a fully automated solution that takes care of everything: from gathering information in real-time to taking onchain actions. The Zyfai Agent dynamically allocates your funds across chains and whitelisted protocols to optimise for the highest possible APY.

By default, the Zyfai Agent is set to auto-compound, allowing you to earn the best yield possible and enhance your capital efficiency.

Zyfai | Follow on X | Read blog | Explore Docs

After one week of live data across both Base and Arbitrum, the results confirm our hypothesis. The numbers are telling a compelling story of measured, sustainable improvement.

The Proof is in the Performance

Let's look at the hard data. Here's how Smart Rebalancing v.2 compares directly against our previous engine across both major chains, showing base APY before the rZFI boost:

Now, when we add the current rZFI boost of ~5.65%, the total APYs become even more compelling:

• Base: ~23.65% APY

• Arbitrum: ~18.65% APY

To be clear, these are more than theoretical numbers, this is the actual live performance data of Zyfai users from the first week of v.2's operation.

Why This Matters Beyond the Numbers

The consistent improvement across both chains demonstrates that our upgraded rebalancing logic is working as designed. But what's happening under the hood is just as important as the yield improvement:

The Five-Check System in Action

Every basis point of improvement was earned while our Agents rigorously applied the five safety and efficiency checks:

1. Pool Safety: Ensuring positions only enter deep, secure liquidity pools

2. Meaningful Yield Differences: Ignoring minor fluctuations, only chasing substantive improvements

3. Yield Stability: Avoiding volatile, unsustainable yield spikes

4. Cost-Benefit Analysis: Calculating precise payback periods before any move

5. Liquidity Monitoring: Proactively exiting crowded money markets

This disciplined approach means the improved yields aren't coming from increased risk-taking. They're coming from smarter decision-making within the same risk parameters.

The Tiered Advantage: Scaling Intelligence with Capital

While this initial data shows aggregate improvement, it's important to remember that within these numbers lies the tiered rebalancing structure:

• Tier 1 ($0–3K): 1 rebalance/day → capturing steady improvements

• Tier 2 ($3K–10K): 3 rebalances/day → more frequent opportunity capture

• Tier 3 ($10K–100K): 6 rebalances/day → strategic positioning

• Tier 4 ($100K+): 12 rebalances/day → maximum capital efficiency

Looking Ahead: The Foundation for Omnichain

This successful v.2 deployment is about building the sophisticated decision-making framework required for autonomous omnichain operations. The same logic that determines when to move between protocols on one chain will soon power moves between chains themselves.

Zyfai agents that can intelligently navigate Base and Arbitrum's yield landscapes are the same agents that will soon navigate across the entire multi-chain ecosystem.

The Bottom Line.

One week in, Smart Rebalancing v.2 is doing exactly what we built it to do. It's moving us from a blunt instrument to a precision tool, delivering tailored capital efficiency to every user, regardless of their portfolio size.

The model is working. The yields are validating. The foundation for a chain-abstracted future is now live and operational.

This is just the beginning. We're continuously analyzing the data and tuning the engine. The journey to a single, intelligent balance across all of DeFi is underway.

Your capital deserves an upgrade. Simply use Zyfai.

About Zyfai

Zyfai is a fully automated solution that takes care of everything: from gathering information in real-time to taking onchain actions. The Zyfai Agent dynamically allocates your funds across chains and whitelisted protocols to optimise for the highest possible APY.

By default, the Zyfai Agent is set to auto-compound, allowing you to earn the best yield possible and enhance your capital efficiency.

Zyfai | Follow on X | Read blog | Explore Docs