Assume the following example. Value consist of 1000 USDC

Question

Assume the following example. Value consist of 1000 USDC

and 392 DFI ( = 392 x 2.55 = $1000 eqv). Essentially I set up a $2000 vault consisting of $1000 worth of USDC and $1000 worth of DFI.

step2: mint $800 DUSD, collateralization ratio = 250%

step 3: provide 800 DUSD to liquidity mining, I have to provide 800 DUSD and $800 eqv of DFI. Can this DFI come from the 392 DFI that is originally in my vault?

step 4: calculation of ROI
DUSD: DFI APY is 130%, and my LTV is only 40%, hence. I am earning 0.4 x 130% = 52% on top of my original $2000. Thereafter I have to minus of 5% or so for the vault interest rate, leaving 47% as ROI.

Am I missing anything? thanks.

#blockchain #cryptocurrency #defichain #english

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31.01.2022

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Tracey Williams Автор вопроса

Dennis Washington
The DFI can come from your original 392, but if yo...

60% of vault earning zero? Thanks. For the sake of simplicity, APR is fine. the of DUSD minted is 800, out of original vault value of 2000. So only 40% of the vault is "utilized" for Liquidity mining, the remaining 60% is stucked as collateral in the vault, earning 0%. Is there a way to earn yield on this 60% (collateral) portion ? Total outlay = 2000 + 800 Since I cannot use my original 392 DFI to participate in the liquidity mining. Not only do I have to fork out 800 DUSD, but I also have to put in an extra 800 worth of DFI. This brings my total investment outlay to be 2000 + 800 = 2800. Approximate ROI calculation

0

31.01.2022

Tracey Williams Автор вопроса

ok, thanks. I understand it as —> the 60% of the 2000 is "utilized" as collateral, but it is not earning any interest directly.

0

31.01.2022

Dennis Washington

Tracey Williams
ok, thanks. I understand it as —> the 60% of the ...

Correct

0

31.01.2022

Dennis Washington · Accepted Answer

The DFI can come from your original 392, but if you remove it from the vault and put it in the pool, it will no longer be in the vault so your collateral ratio will be lower. A token can't be in more than one place at a time! I am unsure of the math you are using as you are in some instances using apy, but then referring to ROI with no time frame. 40% of what, I am not sure where you get 40%. To get the roughest of estimations, take the Apr of the pool, divide it by 360 multiple by the amount invested in the pool. This will get you a rough daily reward. This doesn't account for vault interest, commissions, others joining/leaving pools... Just a rough estimation. Also please note that the listed returns are APR not APY

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Assume the following example. Value consist of 1000 USDC

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