Lending Yield Curve Arbitrage

Lending Yield Curve Arbitrage MCP Connector for Claude

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Identify and evaluate profitable yield arbitrage loops between stablecoin lending protocols.

3 tools Official Updated Oct 1, 2026 Official Vinkius Partner

This MCP server provides a deterministic toolset for identifying and evaluating yield arbitrage opportunities between decentralized lending protocols. By analyzing the yield spread between different stablecoin pools, users can identify profitable loops where they borrow from one protocol and supply to another. The server includes tools like find_arbitrage_opportunities to scan for valid spreads, evaluate_loop_economics to calculate net yield and liquidation risks, and get_protocol_safety_score to assess protocol maturity and liquidity. It enforces strict safety rules, such as minimum TVL requirements and age thresholds, to mitigate smart contract risk.

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3 tools expose this connector's capabilities to your AI agent.

evaluate_loop_economics

Calculates the net profitability and risk metrics for a specific identified arbitrage opportunity

get_protocol_safety_score

Provides a qualitative risk assessment of a protocol based on its operational history and liquidity

find_arbitrage_opportunities

Identifies valid arbitrage loops between different lending protocols for stablecoin pairs

See how to talk to your AI agent using Lending Yield Curve Arbitrage.

Find arbitrage opportunities between Aave and Compound for USDC.

The identified opportunity is to borrow USDC from Compound at 3.5% and supply it to Aave at 5.2%, resulting in a yield spread of 1.7%. However, this does not meet the minimum 2% spread requirement.

Calculate the economics for a 100,000 USDC arbitrage loop with a 1% risk buffer.

The net yield for this loop is 3.45% after accounting for the liquidation risk buffer and gas costs. The loop LTV is 65%, and the liquidation price is set at a 20% deviation from current levels.

Is the Morpho protocol considered safe for this strategy?

Yes, Morpho is considered a trusted protocol as it meets the minimum age and TVL requirements for this strategy.

Use the `find_arbitrage_opportunities` tool with your lending and borrowing rate data. It will return valid loops where the yield spread exceeds the required safety thresholds.

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