Replacing Legacy Yield Products with OAVs and the Yield.xyz API

Overview

Yield.xyz Optimized Allocator Vaults (OAVs) are smart contracts designed to wrap third-party DeFi strategies in a way that enables automatic compounding, configurable fee logic, and seamless integration. They allow partners to monetize existing DeFi opportunities, improve cmplex user experience into single token flow, and increase APY due to automated compounding.

This guide outlines how to replace legacy or static yield products with OAVs using the Yield.xyz API. The integration process is designed to be minimal, with support for unified balance views and opt-in user migration from existing products.

Why OAVs?

• Earn fees on top of any integrated yield source
  OAVs support deposit, performance, and management fees, enforced at the vault level and visible on-chain.
• Incentive token reinvestment
  Vaults automatically claim, swap, and reinvest incentive tokens (e.g. protocol rewards), so the displayed APY reflects actual yield.
• Abstracted transaction flows
  Smart Routing handles swaps, wrapping, and bridging behind the scenes. You only need to call a single endpoint to generate the full flow.
• Unified integration model
  One integration per yield opportunity. Yield.xyz returns balances, APY, and transactions in a normalized format across all chains and strategies.

Integration Options

Option 1: Direct OAV Contract Integration (fastest option)

Start by routing deposits and withdrawals directly to the deployed OAV contracts. These are ERC-4626-compliant and compatible with existing on-chain infrastructure.

• Use deposit() and withdraw() or redeem() methods
• Vaults accept the same stablecoin assets (e.g. USDC, USDT, sUSDe)
• Smart contract addresses and ABIs are provided by Yield.xyz

Option 2: Integration via Yield.xyz API (most user friendly option)

Use the full Yield.xyz API to seamlessly enable and manage multiple OAVs, show rich metadata, streamline deposits, withdrawals, unified balances and pending actions to migrate legacy positions into OAV.

• Use /v1/actions/enter and /v1/actions/exit to return ready-to-sign transactions
  • Transactions include any required approval, wrap, swap, or bridge steps
• Use /v1/yields to fetch metadata, APY, TVL, and more
• Use /v1/yields/balances to return user positions

When enabled, migration prompts will appear within the /balances payload. This allows partners to guide users toward upgrading their yield flow while maintaining optionality.

API Summary

Estimated Timeline

Next Steps

1. Identify existing yield strategies (e.g. Morpho USDC, Ethena sUSDe)
2. Yield.xyz deploys OAVs for each target integration
3. Begin routing new deposits via direct contract or integrate the yield.xyz API to handle all interactions
4. (Optional) Enable migration flows and incentives via /actions/manage