New member and looking forward to engaging with the community! I just made my first investment to the DAI vault. I am wondering how long term it is practical to think in terms of my investments with this and other strategies. In other words, is it crazy for me to imagine “what if” I just left my DAI in the vault for a year, 2 years, etc? My goal is to create a diversified portfolio and this seems like a safe place to hold long term stable coins, especially since regular coin values seem volatile at the moment. I’m very aware that vaults are high risk strategies, but I do believe strongly in the continued growth of Yearn Finance. Just wondering what is practical in terms of investment period and how long other members are considering maintaining holdings in the vaults.
Welcome! No, it’s not crazy to leave your funds in vaults long term - you can leave them in the vault as long as you want. I plan to use the vaults indefinitely as a savings account for my crypto and only take it out whenever I need it elsewhere. I would argue that vaults are made for people to keep money in them long term. Now, there are risks that come along with using vault, which you can read about in our faq, and delegated vaults which use CDPs are more risky, but the dai vault is not a delegated vault. Plus, soon you will be able to take out insurance through us and insure your holdings for a small fee.
8 Likes