> For the complete documentation index, see [llms.txt](https://docs.auto.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.auto.fun/defi.md). # DeFi & Yields Auto is an AI trading agent that executes DeFi lending, borrowing, yield farming, and protocol research through natural language chat. Auto connects to Aave, Morpho, and HypurrFi, with analytics across 2,000+ DeFi protocols, so users can compare rates, supply funds, borrow, and manage positions without switching between dashboards. ## What DeFi Is DeFi (decentralized finance) is a category of on-chain financial applications that replace banks and brokers with smart contracts. Users connect a wallet and interact with lending pools, vaults, and borrowing markets directly — no intermediary required. ## Capabilities Auto handles DeFi research and execution in a single chat interface. This differs from traditional DeFi workflows because users normally need to visit multiple protocol websites, connect wallets separately, and compare data across tabs. | Action | What Auto Does | | ----------------------- | -------------------------------------------------------------------------- | | **Lending** | Supplies tokens to Aave, Morpho, or HypurrFi to earn yield | | **Borrowing** | Uses deposited assets as collateral to borrow another token | | **Yield discovery** | Compares APY across protocols, chains, and token types | | **Protocol research** | Looks up TVL, fees, revenue, and historical trends across 2,000+ protocols | | **Position management** | Shows existing DeFi positions and handles withdrawals | > "Show me the best USDC yields right now" > "What can you do with DeFi?" > "Find a low-risk place to park my stablecoins" ## Supported Protocols Auto integrates with four DeFi data and execution layers: | Tool | Function | | ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------ | | **Aave** | Supply tokens to earn yield, withdraw, check positions, and view market rates across Ethereum, Base, Polygon, Arbitrum, and Optimism | | **Morpho** | Explore curated vaults and direct lending markets, check positions, supply, and withdraw | | **HypurrFi** | Lend, borrow, repay, withdraw, use E-Mode, inspect vaults, and manage USDXL on HyperEVM | | **Protocol analytics** | Research protocol TVL, chain TVL, yield rates, fee revenue, and historical trends | | **Yield discovery** | Compare yield opportunities across all supported protocols and chains in one query | ## How Aave Lending Works Aave is a decentralized lending protocol where users supply tokens and earn variable APY. Auto supports Aave V3 on Ethereum, Base, Polygon, Arbitrum, and Optimism. Users supply tokens, earn yield, withdraw later, and check positions — all from chat. ## How Morpho Works Morpho offers two participation modes: | Type | Description | | ----------- | ----------------------------------------------------------------------------------------------------------- | | **Vaults** | Curated pools where a vault curator manages allocation across multiple markets. Simpler entry, blended APY. | | **Markets** | Direct lending pairs (e.g., supply USDC collateralized by WETH). More control, position-level detail. | Auto inspects both and executes supply, borrow, repay, withdraw, or redeem actions from chat depending on the product type. ## How HypurrFi Works HypurrFi is Auto's HyperEVM lending integration. Auto supports Pooled Markets, Euler V2-style vaults, Earn vaults, E-Mode management, and USDXL debt flows. HypurrFi is HyperEVM-only, and HyperEVM gas is not sponsored, so the wallet needs native HYPE before write actions. ## Protocol Research Auto's DeFi analytics track TVL, yields, fees, and revenue across 2,000+ protocols. Auto can look up protocol TVL, compare chains, review yield opportunities, and check historical trends — then transition directly from research to execution. ## What Yield Means Yield is the annualized return earned on deposited crypto, expressed as APY (Annual Percentage Yield). If you supply USDC to a lending protocol at 5% APY, your balance grows proportionally while funds remain in the protocol. Higher yield typically correlates with more risk, less liquidity, or rate volatility. ## Why Use Auto Auto consolidates research and execution into one interface. This differs from manual DeFi workflows because Auto: * Compares rates across protocols and chains in a single query * Shows historical yield trends before users chase high APY * Displays positions across all supported protocols in one view * Shows a pre-flight summary and uses the runtime approval flow before value-moving transactions execute ## Example Research Flow Most users start with research, then act after reviewing data: > "Show me stablecoin yield rates" > > "Which one has the best risk-adjusted return?" > > "Supply 500 USDC to that option" ## Risks to Know | Risk Factor | What to Know | | -------------------------- | ------------------------------------------------------------------------------------------ | | **Rate volatility** | APY fluctuates based on supply/demand — rates can move significantly within hours | | **High APY = higher risk** | Yields above 15–20% are often driven by temporary incentives, not sustainable lending fees | | **Liquidity constraints** | Some pools are harder to exit, especially during high utilization | | **Chain-specific rates** | The same protocol offers different rates on different chains due to varying supply/demand | DeFi gives users direct control over their assets. Auto removes the complexity of managing that control across multiple protocols and chains. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.auto.fun/defi.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.