USDC

General Information

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

Category

Details

Symbol

xUSDC

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 USDC 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 USDC on Compound Finance.

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

How does the reward boost work?

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

The xUSDC 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 USDC tokens into the vault contract.

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

Contracts