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The Yield Router is a non-custodial allocation system that automatically routes capital across vaults and lending markets to maximize yield. It consumes real-time data from the Indexer and executes allocation decisions through user-controlled smart accounts. Users define which vaults, protocols, and chains the Router can access. The Router handles everything else: monitoring rates, evaluating opportunities, executing rebalances.

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Components

The Router consists of three layers:
LayerFunction
Smart AccountsUser-controlled accounts that hold funds and execute transactions, deployed per chain
PoliciesOn-chain rules defining permitted vaults, protocols, assets, and constraints
Execution EngineMonitors yields across chains and protocols, evaluates rebalancing opportunities, executes allocations

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Flow

  1. User connects wallet and creates a smart account (sub-account linked to their main wallet)
  2. User selects a chain
  3. User configures policies (selects which vaults, protocols, and assets their capital will flow into)
  4. User deposits assets into their smart account
  5. Router allocates capital to the highest-yielding permitted vault or market
  6. Router continuously monitors yields via the Indexer across all enabled protocols
  7. When a better opportunity exists, Router rebalances
  8. User withdraws to their main wallet at any time

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What the Router Optimizes

The Router seeks the highest sustainable yield within user-defined constraints. This means:
  • Evaluating current APY across all permitted vaults and markets
  • Comparing yields across protocols and chains
  • Accounting for costs and impacts of moving capital
  • Filtering out unsustainable or artificially inflated yields
  • Respecting liquidity constraints and withdrawal reliability
For risk-adjusted evaluation of yield opportunities, Rosetta includes a built-in risk intelligence layer — see Circular.