lido-vault-monitor

# Lido Vault Position Monitor

Monitor Lido staking positions and Earn vault allocations with plain-language alerts.

## Monitoring Targets

### 1. stETH Staking Position

**Current APR** (benchmark):
```
web_fetch url="https://eth-api.lido.fi/v1/protocol/steth/apr/sma"
```

**Withdrawal queue depth** (affects unstaking time):
```
web_fetch url="https://eth-api.lido.fi/v1/protocol/withdrawals/status"
```

**Protocol-wide stats**:
```
web_fetch url="https://eth-api.lido.fi/v1/protocol/steth/stats"
```

### 2. Benchmark Yield Comparison

Compare stETH APR against alternatives via DefiLlama:

**All staking/lending yields**:
```
web_fetch url="https://yields.llama.fi/pools"
```
> Filter for relevant pools:
> - `project: lido` — stETH base APR
> - `project: aave-v3`, `symbol: WETH` — Aave ETH supply rate
> - `project: compound-v3`, `symbol: WETH` — Compound ETH rate
> - `project: morpho-blue` — Morpho ETH vaults
> - `project: rocket-pool` — rETH APR

**Specific pool history** (30-day trend):
```
web_fetch url="https://yields.llama.fi/chart/POOL_UUID"
```

### 3. Lido Earn Vaults (Mellow)

Lido Earn vaults use Mellow Protocol to allocate across Aave, Morpho, Pendle, Gearbox, and Maple.

**Track vault allocations on-chain** — query vault contract for current strategy:
```
exec command="curl -s -X POST https://eth.llamarpc.com -H 'Content-Type: application/json' -d '{\"jsonrpc\":\"2.0\",\"method\":\"eth_call\",\"params\":[{\"to\":\"VAULT_ADDRESS\",\"data\":\"0x01e1d114\"},\"latest\"],\"id\":1}'"
```
> `0x01e1d114` = `totalAssets()`. Returns total value in underlying token.

**Compare vault yield to benchmarks**:
```
web_fetch url="https://yields.llama.fi/pools"
```
> Filter: `project: mellow` for Mellow vault yields

### 4. DeFi Position Health (wstETH as collateral)

**Aave V3 health factor** for a wstETH position:
```
exec command="curl -s -X POST https://eth.llamarpc.com -H 'Content-Type: application/json' -d '{\"jsonrpc\":\"2.0\",\"method\":\"eth_call\",\"params\":[{\"to\":\"0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2\",\"data\":\"0xbf92857c000000000000000000000000USER_ADDRESS\"},\"latest\"],\"id\":1}'"
```
> `0xbf92857c` = `getUserAccountData(address)`. Returns: totalCollateral, totalDebt, availableBorrow, liquidationThreshold, LTV, healthFactor.

## Alert Conditions

Monitor and alert when:

| Condition | Threshold | Severity |
|-----------|-----------|----------|
| stETH APR drops below benchmark | APR < Aave WETH supply rate | Warning |
| APR drops >20% from 30-day average | Significant yield compression | Warning |
| Withdrawal queue grows >50k ETH | Extended unstaking delays | Info |
| Health factor < 1.5 (Aave collateral) | Liquidation risk rising | Critical |
| Health factor < 1.1 (Aave collateral) | Imminent liquidation | Emergency |
| Vault allocation shift detected | Strategy rebalance | Info |
| wstETH/stETH rate anomaly | >0.1% deviation from expected | Warning |

## Alert Message Format

Alerts should be plain language, explaining:
1. **What changed** — specific metric and direction
2. **Why it matters** — impact on the user's position
3. **What to do** — actionable recommendation (or "no action needed")

Example: "Your stETH APR dropped to 3.1% overnight, below the Aave WETH supply rate of 3.4%. This means holding stETH currently yields less than lending WETH on Aave. Consider whether to maintain your staking position or reallocate. No urgent action needed — APR fluctuations are normal."

## MCP Tool Schema

Expose as MCP-callable tools for other agents:

| Tool | Description |
|------|-------------|
| `lido_vault_health` | Get comprehensive vault position summary |
| `lido_yield_comparison` | Compare stETH APR against DeFi benchmarks |
| `lido_withdrawal_eta` | Estimate withdrawal completion time |
| `lido_position_summary` | Full position report (balance, yield, health) |
| `lido_alert_check` | Run all alert conditions, return triggered alerts |

## Monitoring Schedule

- **APR & yield comparison**: every 6 hours
- **Withdrawal queue**: every 1 hour
- **Health factor** (if collateral): every 15 minutes
- **Vault allocations**: every 12 hours
- **Exchange rate**: every 1 hour

## Usage Tips

- Use DefiLlama as primary yield data source — it normalizes APR/APY across protocols
- stETH APR includes consensus + execution layer rewards; varies daily due to MEV tips
- For Lido Earn vaults, track both the vault's composite yield AND the underlying protocol allocations
- When alerting on yield drops, check if it's a protocol-wide event (e.g., ETH staking APR compression) or vault-specific
- Withdrawal queue depth is a leading indicator of market stress — spikes often precede sell pressure