I might consider a strategy that instead of minting Dai on MKR, deposits it into compound and simply borrows the Dai instead, for a net return in COMP. Either way, ETH obviously has the most massive liquidity of anything out there, almost seems crazy there isn’t already a vault for it.
I think that the reason is that managing the debt add a level of complexity.
There is no vault right now that need to manage debt. Doing so, we will need to have price feed and make sure the ratio stay healthy.
I think the shitty thing of making this a delegated vault, it would be that right now maker dao’s fees are lower than borrowing DAI in aave, but if that changes, you would not have the strategy with the max yield.
This is very cool. So the yETH vault would work as a layer on top of the yCRV Vault, adding some extra logic. It would deposit ETH and borrow Dai/USDC/etc with whichever platform is cheapest, while making sure to stay above the collateralization ratio. Then it would manage rolling/unrolling the stablecoin into the yyCRV vault. It will be interesting to see how it will handle having two different balances on this vault, ETH and yCRV. Or if the vault will just buy more ETH with the earned yCRV.
The savings rate on a CDP is 0% for now, but likely will not be in the future. You could also take into account additional token dispersement, like with COMP, and sell that to make up for potential borrowing rate.
I second this method except borrow from ALL avenues using an optimized amount of usdc/usdt/dai, considering the size of a potential ETH vault, the implications of dai supply and liquidity would be quite the shitshow if it was only using COMP. (referencing the biggest limiting factor using comp is Dai’s kink in interest rate)
I think it would be worth thinking about how to avoid triggering a CGT event here. For most parts of the world swapping ETH => yETH etc could possibly be triggering a capital gains event. Is there a way to just deposit the ETH and you can just see your ETH balance go up over time. Or better still your ETH balance goes up only when you withdraw. This would mean you only need to worry about the interest being income tax, and not worry about triggering CGT events when depositing ETH.