Some assets will earn higher APY if deposited straight to a lending platforms ( such as Aave or Compound) rather than being first deposited to Maker for a DAI loan.
This more straightforward strategy has only two parts:
- 1.Deposit 100% of the pool asset straight to Aave or Compound (wherever yield is highest)
- 2.Claim and redeposit the yield as it is accrued
This is a medium-risk, conservative strategy; the contracts it interacts with are well audited, and the collateralization ratios are conservative.
It could be used as a launchpad for more aggressive strategies, by using the deposits to Aave/Compound as collateral for loans which are then deployed in other interest-yielding platforms.