How CapFin.ai works
CapFin is a decision engine that sits on top of DeFi, not a new protocol itself. It watches the market, scores opportunities the way an institutional risk desk would, and proposes moves for you to approve — end to end, in five steps.
1. Protocol adapters normalize the opportunity set
DeFi lending markets, liquidity pools, and liquid-staking protocols each report yield, liquidity, and risk data differently. CapFin's protocol adapters translate every opportunity — APY, total value locked, utilization, liquidation parameters — into one common schema, so a lending position on one chain can be honestly compared to a staking position on another.
2. Every opportunity gets a risk-adjusted score, not just an APY
Headline APY is a bad way to compare opportunities on its own — a 150% yield on an unaudited three-week-old farm is not "better" than 6% on a protocol that has processed billions of dollars for years. CapFin's risk scorer rates every opportunity on five factors: smart contract audit history, TVL concentration, oracle dependency, liquidation buffer, and historical yield volatility. Those factors combine into a composite safety score from 0–100, which is then used to discount the raw APY into a risk-adjusted yield.
That discount is deliberately non-linear: it gets sharply more punishing as the safety score drops, rather than a straight-line haircut. A low score doesn't just mean "somewhat riskier" — historically it correlates with tail risk (exploits, rug pulls, oracle failures), so the scoring is built to make sure a flashy, high-APY, unaudited protocol can never quietly outrank a boring, audited, blue-chip one on the numbers CapFin actually acts on.
3. Rebalancing is policy-driven and simulated before it ever reaches you
You set a mandate — conservative, balanced, or aggressive, plus any concentration limits — and CapFin's rebalancer proposes allocations that fit it, automatically excluding anything that falls below your minimum acceptable safety score. Before any proposed trade is ever presented to you, it's simulated against a forked copy of current mainnet state to catch slippage or failure conditions ahead of time, not after your wallet has already signed something.
4. Circuit breakers watch for trouble in real time
Between rebalances, CapFin monitors for the kinds of events that precede real losses: protocol exploit alerts from threat-intelligence feeds, abnormal oracle price deviation, and unusual liquidity withdrawal patterns from a pool you're allocated to. Any of these can trigger an automatic de-risking proposal — moving capital toward safety faster than a manual review cycle would catch it.
5. Nothing moves without your signature
CapFin proposes; it never executes on its own. Every rebalance, from routine to emergency, is a transaction proposal that your own wallet — hardware wallet, multisig, or institutional custodian — reviews and signs. See Security & Trust for why that matters.