Defrost Finance
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βοΈ Mechanisms and Functions
Yielding Strategies
Alice is chasing yields in stablecoins and has a position in Benqi, worth 1000 DAI, currently earning 7.5% APR. She contributes her qiDAI in the super vault and mints 950 H2O. She then pairs with another 950 DAI, contributes them into the H2O3CRV Curve pool and stakes the LP token to mine additional MELT rewards.
Bob is chasing yields in stablecoins and has a position in Benqi, worth 1000 DAI, currently earning 7.5% APR. He contributes her qiDAI in the super vault and mints 950 H2O. Then he sells 950 H2O for 949 DAI, and deposits it into Benqi to get qiDAI again. He loops this process 14 times to get an almost 10x exposure on the Benqiβs yielding position.
Sam is chasing yields in stablecoins and bullish on MELT. He discovers there is an imbalance in the H2O3CRV Curve pool, and H2O is traded at 0.98 USD. He contributes DAI into the pool, to get some favourable bonus on the LP tokens, and contributes them to the MELT mining contract for MELT rewards.
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