YieldRouter

Revenue Flywheel Yield Aggregator for Initia

One deposit, four revenue streams. YieldRouter automatically scans every DeFi protocol on Initia and routes your assets to the highest-yielding opportunities. Vault yield, staking rewards, LP trading fees, and appchain revenue share -- all from a single deposit.

INITIATE: The Initia Hackathon (Season 1)

Track: DeFi (EVM/Solidity) Builder: Farouk Allani (@farouk-allani) Deadline: April 15, 2026

Submission Requirements

• .initia/submission.json
• README.md
• InterwovenKit integration (real @initia/interwovenkit-react v2.5)
• Initia-native features: Enshrined Liquidity, Auto-Sign Session, Interwoven Bridge, .init Usernames
• Demo video

The Problem

DeFi yield is fragmented. Users need to manually research protocols, compare APYs, manage risk, and rebalance positions across multiple platforms. On most chains, you earn from a single source -- lending OR staking OR LP. You never capture the full revenue stack.

On Initia, this problem has a unique solution. Initia's architecture enables four simultaneous revenue streams from a single deposit -- something no other chain can offer.

The Solution: The Revenue Flywheel

                     YOUR DEPOSIT
                         |
            +------------+------------+
            v            v            v
      +-----------+ +-----------+ +-----------+
      |  Vault    | | Enshrined | |    LP     |
      |  Yield    | | Staking   | |   Fees    |
      |  12.4%    | |   6.8%    | |   4.2%    |
      +-----+-----+ +-----+-----+ +-----+-----+
            |            |            |
            +------------+------------+
                         v
                +--------------+
                |   Revenue    |
                |   Share      |
                |    2.4%      |
                +------+-------+
                       v
               25.8% Combined APY

Why 4 Streams?

Stream	Source	Initia Feature
Vault Yield	Best lending/farming strategy	Strategy Router
Staking Rewards	LP staked with validators	Enshrined Liquidity (Initia-native)
LP Trading Fees	Automated market maker fees	DEX integration
Revenue Share	Appchain tx fees recycled	Initia revenue sharing

Enshrined Liquidity is the key differentiator. On other chains, you choose between LP fees OR staking rewards. On Initia, LP positions are staked directly with validators, earning both simultaneously. YieldRouter automates this.

Architecture

Smart Contracts (Solidity 0.8.24)

contracts/
+-- VaultStrategy.sol        # Core vault: deposit, withdraw, share math, rebalancing
+-- RevenueDistributor.sol   # Harvests 4 revenue streams, distributes to vault
+-- EnshrinedStaker.sol      # Initia Enshrined Liquidity staking (native feature)
+-- StrategyRouter.sol       # On-chain routing engine (the "brain")

VaultStrategy -- Core vault contract. Accepts deposits, mints shares, routes to the best yield strategy, and compounds revenue from all 4 streams.

RevenueDistributor -- Keeper-driven harvest cycle. Calls each revenue adapter, takes a performance fee, and forwards net revenue to the vault.

EnshrinedStaker -- Initia's unique Enshrined Liquidity feature. LP tokens staked directly with validators for dual yield. This is only possible on Initia.

StrategyRouter -- The on-chain routing brain. Scores every strategy using a composite algorithm and allocates capital proportionally to the top-N:

compositeScore = (APY x 0.50) + (Risk x 0.30) + (TVL x 0.10) + (Freshness x 0.10)

Frontend (Next.js 16 + TypeScript)

src/
+-- app/
|   +-- layout.tsx           # Root layout with InterwovenKitProvider
|   +-- page.tsx             # Landing page
|   +-- app/page.tsx         # Interactive dashboard
+-- components/
|   +-- InterwovenProvider   # Real InterwovenKit integration
|   +-- Header, Hero, HowItWorks, RevenueDashboard, StrategyAllocation,
|   +-- DepositWithdraw, Yields, Security, Roadmap, FAQ, CTA, Footer
+-- lib/
    +-- strategy-router.ts   # Client-side routing algorithm
    +-- adapters.ts          # Protocol adapter interfaces
    +-- bridge.ts            # Interwoven Bridge integration
    +-- init-username.ts     # .init username resolution

Initia-Native Features

1. InterwovenKit Integration (Real, Not Mocked)

Full @initia/interwovenkit-react v2.5 integration:

• InterwovenKitProvider with TESTNET config
• useInterwovenKit() for wallet state, openConnect, openWallet, disconnect
• openBridge() and openDeposit() for cross-chain deposits
• InterwovenKit floating widget for wallet management
• useUsernameQuery() for .init username resolution

2. Auto-Sign Session UX

Real autoSign.enable() / autoSign.disable() from InterwovenKit:

• Toggle in dashboard to skip repeated wallet popups
• Faster transaction flow for routine deposits and withdrawals
• Visible session status with per-chain tracking

3. Enshrined Liquidity (Unique to Initia)

EnshrinedStaker.sol manages dual-yield positions:

• LP tokens staked directly with validators
• Earn LP trading fees AND staking rewards simultaneously
• Validator management with epoch-based reward calculation
• The routing engine always includes Enshrined LP (Initia-native bonus)

4. Interwoven Bridge

Cross-chain deposits from Ethereum, Noble, Osmosis, and Cosmos Hub:

• Uses InterwovenKit's openBridge() for the native bridge UI
• openDeposit() for quick deposits with specific denoms
• Supported assets: INIT, USDC

5. Initia Usernames (.init)

• .init username display throughout the app
• validateUsername() for format validation
• formatAddress() prefers username over raw address
• parseRecipient() identifies username vs address input

Tech Stack

Layer	Technology
Frontend	Next.js 16 + React 19 + TypeScript + Tailwind CSS 4
Smart Contracts	Solidity 0.8.24 (EVM, Foundry)
Testing	Foundry (forge) -- 60+ unit tests
Wallet	InterwovenKit React v2.5
Bridge	Interwoven Bridge (via InterwovenKit)
Chain	Initia EVM rollup

Getting Started

Prerequisites

• Node.js 18+
• Foundry (for smart contracts)

Installation

git clone https://github.com/farouk-allani/YieldRouter.git
cd YieldRouter
npm install

Development

npm run dev

Open http://localhost:3000 to see the app.

Build

npm run build

Smart Contracts

# Compile
forge build

# Test (60+ tests)
forge test -vvv

# Deploy
forge script script/DeployYieldRouter.s.sol --rpc-url $RPC --broadcast --verify

Smart Contract Tests

test/
+-- VaultStrategy.t.sol          # 18 tests: deposits, withdrawals, share math, rebalancing
+-- RevenueDistributor.t.sol     # 12 tests: harvest cycles, fees, access control
+-- EnshrinedStaker.t.sol        # 16 tests: staking, rewards, epochs, lifecycle
+-- StrategyRouter.t.sol         # 20+ tests: scoring, routing, portfolio, rebalancing
+-- mocks/
    +-- MockERC20.sol            # ERC20 test token
    +-- MockRevenueAdapter.sol   # Mock harvest adapter

Go-To-Market Strategy

Target Market

The DeFi yield aggregator market has $2.1B in TVL and is growing 40% year-over-year. Existing aggregators (Yearn, Beefy, Harvest) operate on chains where only single-source yield is possible. YieldRouter captures 4 revenue streams -- a structural advantage unique to Initia.

Revenue Model

• 10% performance fee on harvested yield (industry standard)
• At $25M TVL with 20% average APY: $500K+ annual revenue
• No token required for revenue -- protocol earns from day one

Competitive Landscape

Feature	YieldRouter	Yearn	Beefy
Revenue streams	4	1	1
Enshrined staking	Yes	No	No
Cross-chain deposits	Yes (Interwoven)	Limited	Limited
On-chain routing	Yes	Off-chain	Off-chain
Revenue share to users	Yes	No	No

Roadmap

Phase 1 (Q2 2026): Launch on Initia mainnet, onboard 500 depositors, $500K TVL Phase 2 (Q3 2026): 10+ yield sources, multi-asset vaults, keeper automation, $5M TVL Phase 3 (Q4 2026): Governance token, DAO strategy whitelisting, institutional vaults, $25M TVL Phase 4 (2027): Cross-chain yield routing, AI optimization, SDK, mobile app, $100M TVL

Design System

Token	Value	Usage
--color-primary-dark	#0f172a	Headlines, body text
--color-accent-green	#b6ff5c	CTAs, highlights, yields
--color-accent-purple	#a183ff	Secondary actions
--color-neutral-50	#f8f8f5	Background
--color-dark-surface	#1e293b	Dark cards

License

MIT