📈Strategies

Descriptions for available VaultCraft strategies. Note, not all strategies are available for each asset / protocol

LP Compounding

• The vault stakes the user's LP Token in a gauge, earning the platform's governance token. Earned token is swapped for more LP Token. To complete the compounding cycle, the new LP Token is added to the farm, ready to go for the next earning event. The transaction cost required to do all this is socialized among the vault's users.

Folding

• Supplies and borrows asset in money markets simultaneously to earn protocol governance token. Flashmints are then used to mint DAI from MakerDAO to flashlend and fold the position to boost APY. Earned tokens are then harvested, sold for more asset, and then deposited back into the strategy.

Leverage

• Deposits assets as collateral in a money market, then borrows against it (often in stablecoins like USDC). The borrowed stablecoins can be reinvested by converting them back into the original asset and redepositing it as additional collateral, allowing further borrowing in a recursive loop. This amplifies exposure to the original asset and increases potential returns if its value rises, while also earning yield from both the deposited collateral and the borrowed assets. However, this strategy comes with the risk of liquidation if the collateral value drops or if the debt becomes too high, requiring careful management to maintain sufficient collateral ratios and avoid automatic liquidation.

Idle Finance Reinvest

• Supplies USDC to Idle Finance to earn IDLE and COMP. Earned tokens are harvested, sold for more USDC, and then deposited back into the strategy.

Angle Reinvest

• Provides USDC liquidity to Angle Protocol for sanTokens that are staked to earn ANGLE. Earned tokens are harvested, sold for more USDC, and deposited back into the strategy.

Maker Folding

• Supplies USDC to MakerDAO Peg Stability Module for a USDC-DAI ratio that is then deposited into the Uniswap v2 DAI-USDC liquidity pool. Flashmints are used to mint DAI from MakerDAO to flashlend and fold the position, boosting the APY. Earned tokens are harvested, sold for more USDC, and then deposited back into the strategy.

Flux Lending

• Supplies assets into Flux Finance to earn lending interest. These assets get borrowed by accredited investors which supply on-chain US Treasuries as collateral.

OUSD

• OUSD integrates with Aave and Compound to automate yield on over-collateralized loans. The OUSD protocol also routes USDT, USDC, and DAI to highly-performing liquidity pools as determined by trading volume and rewards tokens (e.g. Curve rewards CRV tokens to liquidity providers). Yields are then passed on to OUSD holders. In addition to collecting interest from lending and fees from market making, the protocol automatically claims and converts bonus incentives that are being distributed by DeFi protocols.

OETH

• OETH integrates with various Liquid Staking Providers to optimize interest earned by staking Ether. The OETH protocol also utilizes Curve and Convex Finance to earn trading fees and additional rewards on ETH / OETH. It automatically claims and converts bonus incentives that are being distributed by these protocols.

Staked yCRV

• Accepts yCRV to earn a continuous share of Curve Finance fees and Curve DAO voting bribes. Earned 3Crv (Curve's 3pool LP token) fees and rewards are harvested, swapped for more yCRV which is deposited back into the strategy. Swap happens either via market-buy or mint, depending which is more capital efficient.

Lending

• The vault supplies assets into a given protocol to earn lending interest.

Automated Asset Strategy

• The vault supplies assets into a given protocol to earn yield on their automated asset strategies.

Senior Tranche

• The vault supplies assets into a senior tranche of a given protocol. Senior tranches offer stable returns with built-in coverage but reduced upside.

Junior Tranche

• The vault supplies assets into a junior tranche of a given protocol. Junior tranches offer higher returns but with higher risk since they minimize the risk of the corresponding senior Tranche.