Manage Vault

Flow of Vault Management in ABS Finance

The process of managing vaults in ABS Finance involves an automated AI-driven optimization flow, as illustrated in the updated diagram. Below is the detailed flow:

Step-by-Step Flow

1. Data Recognition

Action: The Observer component in the Core module recognizes new data updates from the Storage API, which is populated with real-time and historical data. Purpose: To ensure the system has access to the latest market information and vault performance metrics for analysis.

2. Strategy Optimization

Action: The Optimizer analyzes strategies based on historical and real-time data to assess optimal yield. Purpose: To continuously refine strategies based on real-time market conditions and performance metrics.

3. Portfolio Evaluation

Action: The Evaluator assesses the current portfolio allocation and compares it to an optimal portfolio allocation. Purpose: To continuously reallocate assets to achieve an optimal portfolio.

4. Validation and Risk Assessment

Action: The Validator performs comprehensive checks on the proposed strategy optimizations before passing them to the Executor. Purpose: To ensure all strategy changes meet predefined risk parameters and protocol constraints.

5. On-chain Implementation

Action: The Executor translates approved strategies into transactions and executes them via Solana's RPC node. Purpose: To implement optimized strategies directly on the blockchain, adjusting vault parameters for maximum yield.

Summary Table

Step
Component Interaction
Action
Purpose

1

Storage API ↔ Core Observer

Recognize new data updates

Provide up-to-date information for analysis

2

Observer → Optimizer

Analyze strategies for optimal yield

Continuously refine strategies based on market conditions

3

Optimizer → Evaluator

Assess and compare portfolio allocations

Continuously reallocate assets for optimal portfolio

4

Evaluator → Vault Manager Validator

Check proposed strategy optimizations

Ensure compliance with risk parameters

5

Validator → Executor → Solana RPC

Execute transactions on-chain

Implement strategy optimizations

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