Introducing HOP: Cross-Chain Yield Optimization with MU Wallet
Background
As the Layer 1 (L1) and Layer 2 (L2) ecosystems have matured, DeFi liquidity has become increasingly fragmented across networks. It’s common to find enticingly high interest rates on one network, like Arbitrum, while your funds are parked on another, like Optimism. L2 solutions offer better throughput and latency, but cross-chain interactions remain a hassle—particularly for stablecoin yield chasers.
For yield hunters, the challenges are clear: tracking APYs across multiple protocols and networks, constantly monitoring rates, and migrating funds from one protocol to another. Add cross-chain bridges to the mix, and the process becomes even more tedious. Ensuring your stablecoins are working efficiently for the best yields often involves a labyrinth of steps, calculations, and hidden costs.
Enter MU Wallet’s HOP feature—a tool designed to simplify cross-chain yield optimization and make chasing stablecoin yields easier than ever.
What is HOP?
HOP is a feature that allows users to seamlessly migrate their vault positions across networks and protocols with just one click.
Imagine this scenario: Your USDT deposited in Arbitrum’s Aave vault is earning 10% APY. One day, Base’s Aave vault offers a skyrocketing 50% APY for USDC. With HOP, you can effortlessly migrate your position from Arbitrum Aave USDT to Base Aave USDC in a single transaction.
Key benefits of HOP include:
Simplified UX: A single intuitive action replaces the traditional multi-step process.
Transparent Costs: MU Wallet provides a detailed quotation for the operation, so you know exactly how much it will cost and whether the migration is profitable.
Efficiency: Avoid costly or redundant steps in complex DeFi operations, ensuring every move is intentional and worthwhile.
How to Use HOP
Using HOP is straightforward and user-friendly:
Find a Target Vault: Start by identifying a vault with an attractive APY.
Select a Source Position: Choose the vault position you want to migrate from.
Review the Quotation: MU Wallet provides a detailed breakdown, including:
Slippage Buffer: A buffer for swap slippage; any leftover tokens remain in your wallet.
Projected Yield and APY Changes: See the estimated monthly yield and how your APY will change post-migration.
Note: If some of your tokens or positions don’t appear in the input dropdown, refer to the Restrictions section for more details.
How HOP Works
HOP leverages MU Wallet’s smart account capabilities and cross-chain messaging protocols to streamline the migration process. Here’s what happens under the hood:
Redeem your vault shares.
Approve tokens for transactions.
Execute token swaps using 1inch for optimal routing.
Bridge tokens across networks using Across.
Deposit into the destination vault.
All these steps are bundled into a single, pre-rendered transaction for maximum efficiency.
Restrictions and Future Improvements
Two-Step HOP
In some cases, direct HOPs may not be possible due to unsupported assets or bridging limitations. If this happens, a two-step HOP is required:
Withdraw from the source position to any supported token on the target network.
Deposit the withdrawn token into the target vault.
Slippage Buffer
Since transactions are pre-rendered, a small slippage buffer is required for swaps. Any leftover tokens stay in your wallet, which could be annoying or costly, especially on networks with high fees like Ethereum mainnet.
Looking Ahead: Future Enhancements
Good isn’t good enough—we aim to make HOP even smoother and more intuitive. Future updates include:
Different Bridging Asset: Enable using different assets for bridging to facilitate routes that are currently not available.
Exact Amount Deposits: Ensure precise token allocation for deposits, eliminating leftover tokens from the slippage buffer.
Stay tuned for these enhancements as we continue to refine the HOP experience!
Ready to simplify your yield-chasing journey? Try MU Wallet’s HOP and make cross-chain yield optimization effortless.
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