Returns on the ‘Generic Leverage Compound Farm’ strategy

    The USDC yVault has a ‘Generic Leverage Compound Farm’ strategy that earns a return by supplying liquidity to Compound, using flash loans for additional leverage.

    Conclusion

    We have defined yearn vaults and how they use strategies to manage capital to generate yield. We evaluated the StrategyGenericLevCompFarm of the USDC yVault, and in the process determined the return in COMP over the past 30 days and how much flash loans were used to earn the COMP.

    In the past 30 days, we can see that the protocol has earned 17,970.08 in COMP by leveraging 1,564,783,717.16 USDC in flash loans.

    Loading...

    COMP Earned + Leverage

    The table below sums up the total amount of COMP earned by StrategyGenericLevCompFarm in the past 30 days and the amount of flashloan used as leverage.

    Method

    To incentivize lending and borrowing on the protocol, Compound pays out distribution interests in COMP tokens to lenders and borrowers. Since the strategy does both lending and borrowing, to calculate total COMP earned, we need to add COMP rewards from both sides.

    The amount of flash loans used as leverage to boost the APY can also be determined as the amount of USDC borrowed from dY/dX.

    StrategyGenericLevCompFarm of USDC yVault

    Supplies USDC on Compound and borrow an additional amount of USDC to maximize COMP earnings. Flash loans are used to obtain additional USDC from dYdX in order to gain additional leverage and boost the APY. Earned COMP is harvested and sold for more USDC and re-deposited into the vault.

    The purpose of this dashboard is to evaluate the StrategyGenericLevCompFarm of the USDC yVault, and in the process determine the return in COMP over the past 30 days and how much flash loans were used to earn the COMP.

    Introduction

    Yearn vaults are capital pools that automatically generate yield based on opportunities present in the market. Vaults benefit users by employing strategies to socialize gas costs, automate the yield generation and rebalancing process, and automatically shifting capital as opportunities arise.