ETH-DAI

General Information

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

Category

Details

Symbol

xETH-DAI

Risk Profile

Low

Strategy

Pooling + Compound Interest

Protocols

SushiSwap

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 ETH-DAI strategy, the "incentivized" financial market is SushiSwap, where yield is generated by:

  • Pooling Fees: Native APY generated by providing liquidity to SushiSwap's ETH-DAI AMM pool.

  • Compound Interest: Liquidating the SUSHI incentive rewards in exchange for ETH-DAI LP tokens, which is then reinvested into the user's original position.

How does the reward boost work?

After a user deposits SushiSwap's ETH-DAI LP tokens into the vault, the contract automatically mints and transfers xETH-DAI tokens into the user's wallet.

The xETH-DAI 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 Sushiswap ETH-DAI LP tokens into the vault contract.

  2. Upon deposit, they are issued a share of the vault, represented by xETH-DAI. 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 xETH-DAI tokens into the "Rewards Pool" to receive an additional APY in xFORCE tokens.

Contracts