# \[Strategy\] DAI/USDC - farming in Mushrooms Finance

**URL:** <https://gov.yearn.fi/t/strategy-dai-usdc-farming-in-mushrooms-finance/8607>\
**Category:** Vaults\
**Created:** [12 December 2020 03:46 UTC](https://gov.yearn.fi/t/strategy-dai-usdc-farming-in-mushrooms-finance/8607 "2020-12-12T03:46:20Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![cittagazze](https://avatars.discourse-cdn.com/v4/letter/c/e8c25b/32.png) [@cittagazze](https://gov.yearn.fi/u/cittagazze)\
**Post date:** [12 December 2020 03:46 UTC](https://gov.yearn.fi/t/strategy-dai-usdc-farming-in-mushrooms-finance/8607/1 "2020-12-12T03:46:20Z")

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## **Summary**

> Deposit DAI/USDC in [Mushrooms earning vaults](https://Mushrooms.Finance/vaults) and stake the returned vault LP token ([mDAI](https://etherscan.io/address/0x6802377968857656fe8ae47fbece76aae588eef7)/[mUSDC](https://etherscan.io/address/0x23b197dc671a55f256199cf7e8bee77ea2bdc16d) respectively) in its [farming pool](https://Mushrooms.Finance/farms) to yield [$MM](https://www.coingecko.com/en/coins/mm-token) as additional source of profit.

## **Abstract**

> This strategy will try to earn both $COMP(also DAI/USDC as supplier in Compound) plus $MM at the same time via standard yield farming process.
> 
> The [undelying strategy](https://etherscan.io/address/0x8f288a56a6c06ffc75994a2d46e84f8bda1a0744) in Mushrooms Finance for deposited DAI/USDC is supplied to Compound for leveraged earning, similar to what is described [here](http://gov.yearn.fi/t/strategy-ydai-leveraged-comp-farming-added-yusdc-yuni/6998).

## **Motivation**

> Get a higher (or alternative) yield option than currently default v2 DAI/USDC strategy which is [specified here](https://twitter.com/bantg/status/1335670289301184518). Once implemented we can enqueue it in v2 Vaults as an alternative strategy for DAI/USDC vaults.
> 
> Providing [multiple diversified strategies for same asset vault](http://gov.yearn.fi/t/yip-48-vaults-v2-design/6658) is a key differentiator in yearn v2 design and bring more value to entire DeFi community.

## **Specification**

> The entire strategy logic should be quite straight-forward as outlined following:
> 
> 1. Apes deposit DAI/USDC into yearn v2 vault associated with proposed strategy
> 2. Proposed yearn v2 strategy then invest those deposit by depositing in Mushrooms Finance vaults
> 3. Upon successful invest, yearn v2 strategy would receive mDAI/mUSDC minted from Mushrooms Finance vaults as LP token
> 4. Lastly yearn v2 strategy stake received mDAI/mUSDC token to Mushrooms Finance farming pool to yield additional $MM token and a standard harvesting-exchange-reinvest process could applied here to compouding the earning.
> 5. Unstake from farming pool and Withdraw from vault in Mushrooms Finance help yearn v2 strategy to exit the investment. Please note there is a [0.2% withdrawal fee](https://mushroomsfi.medium.com/journey-into-mushrooms-finance-708ab31cda73) in its vault.
> 6. The Mushrooms Finance states that its [$MM farming schedule would last 4 years](https://mushroomsfi.medium.com/mushrooms-finance-governance-token-distribution-schedule-25d633c96fc) from now thus this strategy would be a relatively sustainable choice in the long run. No need worry sth like Uniswap LP mining just for several weeks

**For** :

- Higher yield than current default v2 vault strategy by additional yield farming
- Possibility to extend to other vault in future for any profitable asset in Compound/Mushrooms
- Reasonable and sustainable addition to v2 vault as an alternative strategy in queue

**Against** :

- Similar concerns as [Againsts listed there](http://gov.yearn.fi/t/strategy-ydai-leveraged-comp-farming-added-yusdc-yuni/6998)
- Mushrooms Finance is [under audit with CoinFabrik](https://twitter.com/MushroomsFinan1/status/1332504056175083520) but full report is still not out yet. Although the project looks active building with recent [integration with keep3r network](https://twitter.com/AndreCronjeTech/status/1334438247422955520) and [COVER protocol](https://twitter.com/CoverProtocol/status/1335775901297074177).

**Poll** :

_Poll ([view on site](https://gov.yearn.fi/t/strategy-dai-usdc-farming-in-mushrooms-finance/8607/1))_

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**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/yearn/original/2X/9/9ae7183c96201b2e9a60ad06d0d7664a3e90aeb0.png) [@system](https://gov.yearn.fi/u/system)\
**Post date:** [19 December 2020 03:46 UTC](https://gov.yearn.fi/t/strategy-dai-usdc-farming-in-mushrooms-finance/8607/2 "2020-12-19T03:46:26Z")

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