[Strategy] yCOMP

Hello Friends!

In a few hours COMP will be a collateral type on Maker with a 3% risk premium and a 175% collateralization ratio. This opens the door to a pretty simple strategy for people who are long COMP and wish to farm more COMP.

Strategy:

Deposit COMP into Maker vault (using yETH safety parameters and unwinding mechanism), mint DAI to deposit into Compound, harvest COMP and recycled back to the Maker vault to propagate the cycle. The ecosystem would benefit from reducing gas costs at scale, and wouldn’t have to worry about liquidations, because we could ask Maker for the OSM for COMP.

Pretty boring strategy, but maybe that’s exactly what we need right now :thinking:

Thoughts/suggestions?

7 Likes

I think this is a good idea, and perhaps points towards the idea of “template” vaults– for instance, the yETH vault serves as a template for any other vaults to use Maker, another strategy depositing YFI on Aave could serve as a template for using Aave, etc. Would help speed up opening vaults with similar strategies but only different underlying collateral.

4 Likes

Great! If there is a collateral type that we might want to use, let me know. It takes a bit to move new assets through Maker governance. CRV comes to mind that still needs to be submitted to Maker.

1 Like

Looks like a great idea, I know they are twiking the ETH strategy / vault (dont remember the code) so there is no need of unwinding CDPs when changing strategies.
Probably it would be wise to finish up that code and as @dudesahn said, use it as a template.