How Does CIAN Yield Layer Work?
CIAN Yield Layer is an automated yield optimization platform that aggregates yield sources across DeFi protocols and restructures them into optimized strategies, specializing in leveraged staking loops with liquid staking tokens like stETH. With approximately $297M TVL and multiple security audits (Ackee Blockchain, PeckShield, Omniscia, Paladin), its B grade reflects well-audited automation with some risk from leveraged strategies and cross-protocol composability.
TVL
$358M
Sector
Yield
Risk Grade
B-
Value Grade
D
Core Mechanisms
6.1.1
Overcollateralized leveraged staking loops using LSTs as collateral on lending protocols
Standard leveraged staking pattern — deposit LST, borrow ETH, buy more LST, repeat
2.1.2
Performance fees on automated strategy vault yields
Standard yield aggregator fee model
6.3.2
Automated liquidation protection with keeper-triggered deleveraging
Automated position management to prevent liquidation on underlying lending protocols
7.1.1
Strategy vault reward distribution from underlying protocol yields
Auto-compounding of yields from multiple DeFi sources
2.2.4
NovelYield Layer redistribution engine — aggregates yield sources across protocols and restructures into optimized returns
Novel: cross-protocol yield aggregation layer with structured return redistribution across tokens and networks, beyond simple auto-compounding
How the Pieces Interact
Leveraged staking strategies at up to 2.5x amplify exposure to LST depeg events. A sustained stETH discount below the strategy's threshold triggers automated deleveraging, potentially during periods of low DEX liquidity.
Complex strategies spanning multiple protocols require precise automation timing. Network congestion or bot failures could prevent timely rebalancing, leaving positions in suboptimal or at-risk states.
Yield restructuring across multiple protocols creates dependency chains. A yield source disappearing (protocol pause, governance change) could disrupt strategy returns across connected vaults.
Performance fees are charged on gross yield before accounting for leverage costs. During periods of compressed yields, the fee could consume a disproportionate share of net returns, making leveraged positions unprofitable for depositors while the protocol still profits.
What Could Go Wrong
- Cross-protocol composability — CIAN strategies operate across multiple DeFi protocols (Aave, Compound, Curve, Lido) simultaneously. A vulnerability or state change in any underlying protocol can cascade through active strategy vaults.
- Leveraged staking loop risk — automated leveraged strategies (up to 2.5x on stETH-ETH) amplify exposure to stETH depeg events. A sustained stETH discount could trigger cascading deleveraging across CIAN vaults.
- Automation dependency — strategy execution relies on off-chain automation bots for rebalancing, deleveraging, and liquidation protection. Bot failures during high network congestion could leave leveraged positions exposed.
LST Depeg Cascade Through Leveraged Staking Vaults
ModerateTrigger: stETH trades at >3% discount to ETH for more than 24 hours while CIAN leveraged staking vaults are at maximum 2.5x leverage
- 1.stETH depeg causes collateral ratio to deteriorate across CIAN leveraged staking loop vaults on Aave/Compound — Automated deleveraging triggers sell stETH for ETH to repay loans, further pressuring stETH price
- 2.Multiple CIAN vaults deleverage simultaneously through Curve stETH-ETH pool — DEX slippage increases as concentrated sell pressure hits thin pool liquidity, deepening the depeg
- 3.Vault users see negative returns as deleveraging sells stETH at discount, eating into principal — Users rush to exit remaining CIAN vaults, creating withdrawal pressure across all strategies
Risk Profile at a Glance
Overall: B- (32/100)
Lower score = safer