Strategies

Each Vesper Grow strategy represents some combination of interactions across various DeFi platforms. This includes, but is not limited to: MakerDAO, Aave, Compound, and Yearn.

Each strategy is differentiated by:

  • Deposit asset (that is, the token you can deposit into the pool, such as ETH, wBTC, etc.)

  • Contract risk level

  • Susceptibility to realized losses

Strategies are classed as medium-risk or high-risk. The risk level reflects the level of safety with regards to the underlying contract interactions. Medium-risk strategies have fewer interactions with safer, audited platforms. (These strategies are considered 'medium' rather than 'low' risk because nothing within the cryptocurrency or DeFi category is truly low-risk.) High-risk alternatives may reflect a higher number or more complex interactions as well as exposure to unaudited contracts, such as Yearn.

Lastly, strategies are classed as Conservative or Aggressive depending on their likelihood of realizing losses. This primarily refers to the susceptibility of outstanding loans to liquidation. Conservative strategies use higher collateral ratios on loans to better protect against 'black swan' events that can jeopardize the loan.