Comp: easy and relative safe vaults for DAI/ETH, ~35% apy

Farming comp with DAI is a pretty easy and relatively safe yield farming opportunity (leverage your DAI loan/supply with up to 4x to earn around 35% APY). The only protocol that needs to be used is compound which I think a lot of people feels pretty safe to use.

If we create a vault for this it will make it much easier for users to farm this, because there is a lot of fees to farm it individually (leverage up the loan/supply requires like 10 transactions, then withdrawing and selling the COMP every day or so also requires 2 transactions). I think a lot of people would be interested in using this vault, because they might not have the capital to farm it efficiently by themselves.

After we have created this comp vault for DAI, we can also create a similar vault for ETH, where it just use maker first to generate DAI, then it deposits this into the DAI contract. To get a similar return on your ETH, (wich is currently by far the best possible rate for pure ETH yield farming from what I know of).

This will add 2 new assets to the vaults with relative low risk and a high return, and there is also not that much coding/work required to get it all working.

If enough people think this is a good idea, we can create a YPI to get it implemented.


If you want to avoid 10x transaction, look into flash loan :slight_smile:


Would using Eth as collateral on compound not work out better for COMP yields than minting Dai in Maker? Either way, I think you’re on to something here - the single biggest value proposition from yearn is the gas efficiency in batching complex actions like this. No idea wher it ranks on the priority list, but it should be on there.

1 Like

Love this idea.
I’m already doing it but will unwind it for yearn.

1 Like

hey, interesting, where do you lever up your DAI most efficiently?

I think it is with flash loans, but now we can just use DAI vault, I think it’s farming the same strategy, atleast very similar APY.

Closed since inactive. Feel free to reopen if this topic is still relevant.