Maker-to-Lending-Platform Strategy
This strategy involves MakerDAO plus either Aave or Compound. This strategy operates as follows:
The pooled asset is deposited to a Maker vault as collateral;
DAI loans are taken out against the collateral;
DAI is deposited to Aave or Compound, where it generates yield;
The yield is withdrawn and either
Swapped on the open market back for the deposit asset, or
Redeposited to Aave/Compound for compounding returns
This strategy is medium-risk. It can be deployed as either aggressive or conservative, depending on the low-water and high-water collateralization benchmarks. Conservative pools use a low water mark of 250% and high water mark of 275%.
Last updated