# Tezoro

> Non-custodial DeFi yield aggregator. Deposit and earn the highest yields on autopilot.

Tezoro is a non-custodial DeFi protocol that automatically allocates your assets across 2,000+ lending and vault markets on Ethereum to maximize yield at your chosen risk level. It handles rebalancing, compounding, and risk monitoring - you just deposit and earn.

## How It Works

1. Connect your wallet and deposit stablecoins (USDC, USDT, DAI) or ETH/WETH/WBTC
2. Choose a risk tier: Conservative, Balanced, or Growth
3. Tezoro's algorithm continuously rebalances your assets to top-yielding whitelisted vaults
4. Yield and rewards are auto-compounded - no manual steps
5. Withdraw any time - no lockups, no waiting periods

## Higher Yield

- **2,000+ markets aggregated** - Tezoro has built a proprietary data ingestion and processing infrastructure and supports over 2,000 vaults and markets across Morpho, Euler, Fluid, Aave, Compound, Spark, and other protocols.
- **ML-driven allocation** - Tezoro uses Exponential Moving Average (EMA) to identify the most promising yield markets. The strategy was backtested and achieved a Spearman rho of 0.527, a top-quartile result indicating a large effect size.
- **Gas-free rebalancing** - Tezoro rebalances your assets to keep them in top-yielding vaults, covers all rebalancing gas costs, and charges a 15% fee only on profits.
- **Auto-compounding** - Tezoro not only compounds net yield, but also automatically claims rewards, swaps them into supplied assets, and reinvests them into the vault to maximize yield.

## Lower Risk

- **AI-driven scoring system** - Tezoro uses AI to run real-time risk analysis across thousands of markets based on collateral quality, yield stability, market liquidity, and other factors, with only the top 5% making the cut.
- **Diversification** - To reduce risk, Tezoro diversifies your assets across multiple DeFi yield sources with uncorrelated risk profiles.
- **Customizable risk** - Tezoro is the only DeFi yield aggregator that lets you choose your risk level, from Conservative (large-scale protocols like Aave) to Growth (niche, high-performing vaults).

## Secure

- **No custody** - Tezoro is a non-custodial DeFi protocol. Smart contracts are limited to allocating funds only to whitelisted yield sources.
- **Instant access to your funds** - Tezoro tracks protocol and vault utilization every tick and rebalances assets if utilization exceeds 95%, ensuring users instant access to funds.
- **24/7 monitoring** - Tezoro uses multifaceted monitoring, analyzing on-chain anomalies like TVL drops, off-chain sentiment, and cross-protocol correlations to respond swiftly to incidents.
- **Proprietary technology and data** - Tezoro has built a fully proprietary ecosystem, from on-chain data collection via its own indexers to ML-driven data processing, a custom security engine, and a network of interconnected smart contracts.

## Research Methodology

Tezoro's allocation model is built on quantitative analysis of 81,000+ hourly on-chain yield observations across 18 USDC lending markets over 6.3 months.

- **DeFi yield is volatile** - No protocol held rate leadership for sustained periods. Top positions rotated constantly, with individual markets crossing each other hundreds of times. A static strategy anchored to the current highest APY is structurally exposed to rate reversals within hours.
- **EMA-based ranking** - Tezoro applies Exponential Moving Average (halflife = 24 hours) to hourly on-chain yield data. EMA responds to regime changes without lag accumulation while suppressing short-lived rate spikes. The optimal halflife was identified via grid search (2-48h) and validated by a stable plateau across the 16-48h range, confirming structural robustness.
- **Predictive edge** - EMA at halflife = 24 achieves a Spearman rank correlation of 0.527, compared to random selection (0.000) and naive best-current-APY (0.347). This 52% improvement over the naive baseline compounds across 4,500+ hourly rebalancing cycles.
- **Empirical validation** - Across all 60,970 market-hour observations from 14 active markets, EMA-predicted ranks concentrate along the diagonal of realized ranks — markets ranked highest by the model deliver the highest yield the following hour with statistically significant frequency.

## Fees

15% performance fee on earned yield (profits only). No management fees, no deposit/withdrawal fees. Gas for deposits and withdrawals is paid by the user (typically under $1).

## Vault Tokens

When you deposit, you receive yield-bearing "t" tokens (e.g., tUSDC for USDC deposits) representing your pro-rata share. These tokens appreciate as the vault earns yield and are transferable.

## Risk Tiers

- **Low Risk (Conservative):** Core lending/staking markets with TVL > $100M (Aave, Spark, Compound, Morpho Blue). Allocates exclusively to large protocols with billions in TVL.
- **Balanced:** Established vaults with $100M+ TVL across Morpho, Euler, and Fluid, as well as Aave, Compound, and Spark. Examples: Gauntlet and Steakhouse.
- **Growth:** Niche vaults with $1M+ TVL across Morpho, Euler, and Fluid, alongside Aave, Compound, and Spark. Examples: Clearstar and Yearn.

## Data & Analytics

Tezoro also operates an independent DeFi yield leaderboard at tezoro.io/research showing real net APY, TVL, and risk ratings. All data sourced directly from Ethereum archive nodes with hourly snapshots - no third-party APIs.

## Company

Tezoro, Inc.

## Links

- Website: https://tezoro.io
- App: https://app.tezoro.io
- Research / Yield Leaderboard: https://tezoro.io/research
- X/Twitter: https://x.com/tezoroio
- LinkedIn: https://www.linkedin.com/company/tezoroio
- Contact: hello@tezoro.io