Add a low risk, easy to implement strategy to stake DAI to receive BOND rewards from the new Barnbridge Protocol. BOND would be sold weekly for additional DAI which will be reinvested in staking.
BOND rewards are released weekly for a 25 week period, as of October 28 we are in the second week of this Liquidity Mining Program.
This strategy can be used for the yETH Vault, which mints DAI; it could also be used with a Vault that accepts DAI directly.
Barnbridge is a new protocol that aims to package tranches of different risk assets for facilitate access to investors based on a risk profile. They launched their Liquidity Mining Program on October 18, 2020. 800,000 of the 10 Million Total BOND’s tokens will be used as rewards for StableCoins staking (DAI, USDC, sUSD). An additional 2 Million BOND will be used as rewards for the ETH-BOND pool.
This is a very simple strategy, which runs for a limited time, and could be very profitable for Yearn Users.
There is no apparent risk as the staking is in DAI. Currently there are about 340 Million staking in the StableCoin Pools. It is anticipated that the strategy will have diminishing returns as more BOND supply hits the market in the coming 25 weeks.
There would be a weekly action to harvest the BOND rewards, sell for DAI and stake those DAI back.
Implement the strategy