Aegis
Revolutionary Features for Impact Investing
Created on 8th November 2025
•
Aegis
Revolutionary Features for Impact Investing
The problem Aegis solves
Traditional impact investing in the DeFi space is a fragmented and manual process, forcing users into a false choice: maximize financial yield OR support public goods. There is no easy way to do both simultaneously.
This creates several critical problems:
Cognitive Overhead: A user who wants their capital to generate a positive impact must manually research dozens of protocols, analyzing not only their APYs but also their governance models, treasury allocations, and contributions to the ecosystem. This process is time-consuming and requires deep expertise.
Siloed Opportunities: Most yield strategies are confined to a single blockchain. This means capital misses out on potentially more impactful and profitable opportunities on other chains, leading to suboptimal returns for both the investor and the public goods they wish to support.
Lack of Incentive: DeFi protocols have no direct, financial incentive to become more "public good-friendly." A protocol's decision to fund open-source development or allocate treasury funds to public goods is a charitable act, not a competitive advantage that attracts capital.
Aegis solves this by creating the first automated, multi-chain impact optimization engine for DeFi.
Aegis allows users to deposit their capital once and let our smart contract strategy do the rest. It automatically allocates funds across multiple blockchains (Ethereum, Arbitrum, Optimism, etc.) to find the highest "Impact-Adjusted Yield." We achieve this by introducing a Public Good Score (PGS), a transparent metric that rates protocols based on their contribution to the ecosystem. Aegis then seeks to maximize the formula: Total Yield = APY × Public Good Score.
By building on Octant v2, 100% of the yield generated by Aegis is automatically donated to public goods, creating a sustainable and ever-growing funding stream. In essence, Aegis transforms passive capital into an active force for good, effortlessly.
Challenges I ran into
Building Aegis pushed the boundaries of what's possible with current DeFi infrastructure, and we encountered several significant hurdles:
Challenge: Secure and Reliable Cross-State Management.
The Hurdle: Our core promise is to move capital to the best opportunity, regardless of the chain. This meant we had to solve how a single strategy contract on Ethereum could reliably trigger, track, and verify fund movements and yield generation on Arbitrum, Optimism, and other L2s. A failed bridge transaction or a delay in cross-chain messaging could lead to lost funds or incorrect accounting of total assets.
How We Overcame It: We designed a "Hub-and-Spoke" architecture. The main AegisStrategy contract on Ethereum acts as the "Hub." We deployed lightweight "Spoke" contracts on each supported chain. For cross-chain communication, we integrated the LI.FI protocol. Instead of just bridging assets, we used their messaging capabilities to have the Spokes report their local asset balances back to the Hub. This allows our _harvestAndReport() function to aggregate a true, cross-chain total asset value, ensuring accurate share minting for donations. We also implemented a safety mechanism using a Chainlink CCIP (Cross-Chain Interoperability Protocol) fallback for critical messages.
Challenge: Quantifying "Public Good" Without Centralization.
The Hurdle: Our "Public Good Score" (PGS) is the heart of our innovation. The challenge was to create a scoring system that was both transparent and game-resistant. A purely on-chain metric (e.g., "does the contract have a transferOwnership function?") is too simplistic. A purely off-chain, human-curated score reintroduces trust and centralization, which goes against DeFi principles.
How We Overcame It: We developed a hybrid model for our PublicGoodsScorer contract. The score is a weighted average of two components:
On-Chain Verifiables (60%): Automatically pulled data points like: Is the protocol fully open-source? Does it have a live on-chain governance system? What percentage of protocol fees is directed to a public treasury?
Community-Verified Reputation (40%): We created a registry where respected public goods-focused DAOs (like Greenpill, Funding the Commons, etc.) can register their "vouch" for a protocol. This adds a crucial layer of human judgment and reputation. The system is designed to be progressively decentralized, with the list of reputable DAOs itself being governed by a token-weighted vote.
Challenge: Integrating with Octant v2's Advanced Accounting.
The Hurdle: Octant's BaseStrategy abstracts away the immense complexity of ERC-4626, but our cross-chain model put its accounting to the test. When assets are represented as USDC on Ethereum, USDC on Arbitrum, and aUSDC from Aave, how do you report a single, accurate totalAssets value back to the vault without creating accounting discrepancies?
How We Overcame It: We built a custom normalization module within our _harvestAndReport function. When the function is called, it triggers a cross-chain "read" request to each Spoke contract. Each Spoke returns its local balance, which is then converted to a standard USD value using reliable Chainlink Price Feeds. The Hub contract aggregates these values to get the final, normalized totalAssets. This ensures that when TokenizedStrategy mints new shares for the donation address, it does so based on a precise and verifiable calculation of the yield generated, no matter how complex the underlying asset distribution is.
Tracks Applied (6)
Best use of a Yield Donating Strategy
Most creative use of Octant v2 for public goods
Best public goods projects
Best use of Aave v3 (Aave Vaults)
Best team from dev3pack
Best use of Spark
Cheer Project
Cheering for a project means supporting a project you like with as little as 0.0025 ETH. Right now, you can Cheer using ETH on Arbitrum, Optimism and Base.
