DAI

General Information

DAI strategy is available at: https://forcedao.com/strategies

Category

Details

Symbol

xDAI

Risk Profile

Low

Strategy

Lending + Compound Interest

Protocols

Compound Finance, IDLE Finance

How does the strategy make money?

All Force "Yield Automation" strategies generate revenue by investing the asset a user deposits, into an "incentivized" financial market.

In the case of the DAI strategy, the "incentivized" financial market is Compound Finance via an IDLE Finance proxy, where yield is generated by:

  • Lending Fees: Native APY generated by lending DAI on Compound Finance.

  • Compound Interest: Liquidating both COMP and IDLE incentive rewards in exchange for DAI, which is then reinvested into the user's original position.

How does the reward boost work?

After a user deposits DAI tokens into the vault, the contract automatically mints and transfers xDAI tokens into the user's wallet.

The xDAI tokens can then be "staked" into the rewards pool, where the user can then benefit from additional token rewards in the form of xFORCE.

xFORCE are the interest-bearing version of FORCE. xFORCE yield is generated by a buy back mechanism outlined in the economics section.

Step-By-Step Explainer

  1. To invest into the strategy, users deposit DAI tokens into the vault contract.

  2. Upon deposit, they are issued a share of the vault, represented by xDAI. These user's funds are then made available for investment according to the pre-defined "strategy" above.

  3. User's are able to deposit their xDAI tokens into the "Rewards Pool" to receive an additional APY in xFORCE tokens.

Contracts