Maker-to-Lending-Platform Strategy

This strategy involves MakerDAO plus either Aave or Compound. This strategy operates as follows:

  1. The pooled asset is deposited to a Maker vault as collateral;

  2. DAI loans are taken out against the collateral;

  3. DAI is deposited to Aave or Compound, where it generates yield;

  4. The yield is withdrawn and either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%.

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