You can now just send your eth to a contract, and the contract will open a CDP on Maker, send that Dai to a Curve vault, get CRV as well as lend dai, manage the CDP ratio, and then put all the profits back to eth and give it to you.
lazy beautiful self just needs to click, and then pray to bugs bunny for no baddy haxors, and then just sit and watch numbers go up, or down maybe.
Welcome to decentralized finance (defi) where now we have strategies with this one coded by Andre Cronje and orbxball (?).
Cronje says he tests in production, as in live, as in there defo will be a comma oversight to burn all things, but in this case we’re told “I’ve had as many eyes on it as I possibly could.”
That’s Yearn’s Banteg speaking, who also seems to be anon for now, adding “but as you understand all this is uncharted territory, it’s very experimental and complex.”
The contract is very complex. We can barely read it because semi-coders as otherwise seems to be well written, but this does a lot of things so you can imagine for yourself. Banteg explains what this does as:
“Eth -> lock up in maker vault at 200% collat. -> print dai -> put in dai vault (which is farming crv) -> recycle rewards to eth.”
Numbers are going up for now but as our readers know well, they can also go down. In that case, “it keeps the ratio at 200%, anyone can rebalance it,” says Banteg.
There’s a specific Collateralized Debt Position (CDP) that all can watch now with a nice transaction giving all the details.
All the eths are pooled there, reducing potential fees and potentially increasing rewards with around 300 eth already sent to it.
This has just launched, so for today only coders can play here, although in this case that includes the copy pasta ones, not just the leets, with the UI to go out tomorrow.
As you can see above this is just the latest addition. There’s other strategies with people seemingly liking in particular the usd stablecoins y Curve pool.
That makes this interesting because Cronje and orbxball are basically automating the job of an investment manager.
We haven’t had time to look at the other strategies, but the first one is the hardest to code with the rest then gaining some sort of a skeleton base from which you can start to flesh out.
So what is happening here is people are coming up with ideas of how to make money or invest, and Cronje obliges in automating it all so that we just click, much of it at our pleasure of course and for that he gets a 10% strategist fee which is the default fee level we’re told.
Defi is now growing so fast apparently all the auditors are booked until October, but they’ve had an offer we’re told.
So with this being brand new and “hella complex,” only lunch money is advisable because things can and eventually probably will go wrong at some point, although not necessarily with MakerDAO still standing.
However this code strategizing appears to be the beginning of a new space because while here the angle is obviously some strategy that gets back to the y vaults or ecosystem, we would have probably been happy to pay them 10% to prevent them bots from stealing our sushi, meaning the concept of automating investments for nocoders, semi-coders, or busy coders, can apply far more generally.
So this may be the birth of code as an investment service, called boringly, or the beginning of the building blocks of code based disruption of the entire financial system – well the ‘gambling’ part – or the democratization of finance, or the just click generation meets money.