[Strategy] DAI/USDC - farming in Mushrooms Finance

Summary

Deposit DAI/USDC in Mushrooms earning vaults and stake the returned vault LP token (mDAI/mUSDC respectively) in its farming pool to yield $MM as additional source of profit.

Abstract

This strategy will try to earn both $COMP(also DAI/USDC as supplier in Compound) plus $MM at the same time via standard yield farming process.

The undelying strategy in Mushrooms Finance for deposited DAI/USDC is supplied to Compound for leveraged earning, similar to what is described here.

Motivation

Get a higher (or alternative) yield option than currently default v2 DAI/USDC strategy which is specified here. Once implemented we can enqueue it in v2 Vaults as an alternative strategy for DAI/USDC vaults.

Providing multiple diversified strategies for same asset vault is a key differentiator in yearn v2 design and bring more value to entire DeFi community.

Specification

The entire strategy logic should be quite straight-forward as outlined following:

  1. Apes deposit DAI/USDC into yearn v2 vault associated with proposed strategy
  2. Proposed yearn v2 strategy then invest those deposit by depositing in Mushrooms Finance vaults
  3. Upon successful invest, yearn v2 strategy would receive mDAI/mUSDC minted from Mushrooms Finance vaults as LP token
  4. Lastly yearn v2 strategy stake received mDAI/mUSDC token to Mushrooms Finance farming pool to yield additional $MM token and a standard harvesting-exchange-reinvest process could applied here to compouding the earning.
  5. Unstake from farming pool and Withdraw from vault in Mushrooms Finance help yearn v2 strategy to exit the investment. Please note there is a 0.2% withdrawal fee in its vault.
  6. The Mushrooms Finance states that its $MM farming schedule would last 4 years from now thus this strategy would be a relatively sustainable choice in the long run. No need worry sth like Uniswap LP mining just for several weeks

For:

  • Higher yield than current default v2 vault strategy by additional yield farming
  • Possibility to extend to other vault in future for any profitable asset in Compound/Mushrooms
  • Reasonable and sustainable addition to v2 vault as an alternative strategy in queue

Against:

Poll:

Should we consider this strategy to v2 DAI/USDC vault
  • Sounds cool, Let us get working on it!
  • Not quite sure about this proposal, Let us not do this…

0 voters

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