DynaFi: Modular, AI-Enhanced DeFi Primitives for Hyperion DACs
Teammate - @Kaush
Problem Statement
Despite DeFi’s explosive growth, existing protocols remain rigid, monolithic, and difficult to adapt to diverse use cases—especially within DAO-driven environments like Hyperion’s DACs. Developers struggle to customize or extend DeFi components like staking, lending, and DEXs without forking entire codebases, while governance participants lack the tools to optimize risk and yield efficiently. Additionally, decision-making in DeFi often depends on manual tuning or off-chain analytics, which slows down performance and leads to suboptimal capital allocation.
Solution Overview
DynaFi is a modular suite of DeFi building blocks—staking, lending, and DEX modules—built natively for the Hyperion chain and tightly integrated with DACs through the Metis SDK. Each module is upgradeable, forkable, and fully customizable via DAO-configurable risk parameters. An embedded AI agent learns from protocol activity and dynamically suggests optimizations—like tuning interest rates or redirecting yield—tailored for each DAC’s goals. This ensures real-time governance, smarter capital flows, and resilient on-chain finance—all Hyperion-native.
Project Description
DynaFi introduces a radically composable DeFi toolkit, where DACs can mix and match primitives like:
- Staking pools with programmable emission curves
- Lending markets with AI-driven interest rate models
- Swap pools with dynamic fee strategies
Each module is wrapped in DAO-configurable interfaces, enabling Hyperion DACs to set parameters (e.g., LTVs, reserve ratios, slippage thresholds) without touching the core logic. Under the hood, DynaFi includes:
- Hooks into Metis SDK for reward routing
- A shared on-chain AI agent** that watches protocol data and proposes governance adjustments
- “YieldBoost” , a utility that streams excess yield directly into DAC treasuries or mission-driven vaults
Users will interact via a sleek dashboard to deploy, fork, or tune modules based on their DAO’s preferences. Builders can extend DynaFi primitives, and DACs can plug in AI policy suggestions with a single transaction.
What excites us most is the synergy: Hyperion’s fast execution, DAC-native context, and AI-friendliness make DynaFi a finance layer truly governed by the users, for the users, but smarter.
Community Engagement Features
To gamify user onboarding and encourage hands-on testing of DynaFi’s modular DeFi components, we’re introducing a points-based quest system. Users will be rewarded for completing meaningful interactions with the protocol, which also helps us stress-test our system and gather community feedback.
Here are the testable features and associated tasks:
- Fork a Module
Users can deploy a fork of any DeFi primitive such as staking, lending, or DEX.
Points awarded : 200 - Adjust Parameters
Participants will interact with deployed modules to modify DAO-configurable risk or yield parameters.
Points awarded: 100 - AI Suggestion Test
Users will receive AI-generated optimization suggestions and can accept or reject them based on their DAC strategy.
Points awarded: 150 - Use YieldBoost
Users can route generated yield directly into their DAC treasury using the YieldBoost feature.
Points awarded: 150 - Create a Custom Strategy
Users can combine multiple DeFi modules into a cohesive strategy and submit it for review.
Points awarded: 250
Long Term Vision
- DeFi as Lego for DAOs: Become the default DeFi layer for Hyperion-native DACs
- AI-Governed Yield Layer: Normalize AI-proposed economic policies in DAO governance
- Composable Beyond Hyperion: Expand tooling for Andromeda and interchain use via Metis SDK
- Treasury-Driven Ecosystem Growth: Reinvent how DACs build sustainable economies via YieldBoost
