Strategies
ConvexIbUUSDTUnderlyingStrategy
Investment logic:
Deposited tokens: USDT
Withdrawn tokens: USDT
In order to avoid the risk exposure of holding foreign exchange tokens, foreign exchange will be borrowed by mortgaging USDT in the IronBank protocol.
Fund investment:
The deposited USDT will be invested in the IronBank protocol as collateral, maintaining a borrowing rate of around 75% to borrow foreign tokens. The foreign token is then deposited as a single currency into the Curve pool, and the lpToken obtained from the Curve pool is then staked into the Convex protocol.
Fund redemption:
Redeem ibForex from the Curve pool and repay the same percentage of debt to redeem the USDT collateral.
decreaseBorrow:
When the borrowing rate of the strategy exceeds 80%, the keeper will trigger the decreaseBorrow() method of the contract;
The current borrowing rate is low, indicating that the US Dollar value of foreign exchange is low. The strategy will continue to borrow ibForex from Ironbank and deposit into Curve, then staking the lpToken obtained from the Curve pool to the Convex protocol.
ConvexIbUSDCUnderlyingStrategy
Investment logic:
Deposited tokens: USDC
Withdrawn tokens: USDC
In order to avoid the risk exposure of holding foreign exchange tokens, foreign exchange will be borrowed by collateralizing USDC in the IronBank protocol.
Fund investment:
The invested USDC is divided into two parts:
Part 1: Constituting 40% of the invested capital, keeping USDC unchanged
Part 2: Constituting 60% of the invested capital, and is deposited into the IronBank protocol as collateral, borrowing a foreign exchange worth maintaining a lending rate of around 75%).
Part 1 and Part 2 is then combined and deposited into the Curve pool, staking the lpToken obtained from the Curve pool into the Convex protocol.
Fund redemption:
Redeem the two tokens from the Curve pool in equal proportions: USDC, ibForex, and repay the debt proportionally. If the previously redeemed ibForex is insufficient to repay the debt, the USDC will be exchanged for ibForex in the current Curve pool. After repaying the debt in equal proportions, draw out that proportion of collateral from IronBank, and finally transfer the USDC to the vault.
Rebalance:
When the borrowing rate of the strategy exceeds 80% or falls below 60%, the keeper will trigger the rebalance method of the contract.
If the current borrowing rate is lower, this indicates that the US Dollar value of foreign exchange is low, which further means that there are more ibForex and less USDC in the Curve pool. The strategy will draw out excess collateral - USDC, and directly deposit the single currency USDC into the Curve pool (The less tokens you deposit into the pool, the more LP will be obtained).
If the current borrowing rate is high, this indicates that the US Dollar value of foreign exchange is high, which further means that there are less ibForex and more USDC in the Curve pool. The strategy will redeem the single currency USDC from the Curve pool (the more currencies in the single currency redemption pool, the amount that can be obtained will also be more) and the redeemed USDC is invested in IronBank to increase collateral. However, if the overall mortgage rate exceeds 80%, the above logic will no longer be applied, but dual currency will be redeemed from the Curve pool in proportion, and dual currency will also be used to repay debt and to increase collateral.
UniswapV3
Investment logic:
Deposited tokens: ETH + rETH or stablecoin pairs
Withdrawn tokens: ETH + rETH or stablecoin pairs
Fund investment:
Invest in the corresponding token pair(s) pool according to the proportion in the pool.
Fund redemption:
Remove liquidity from the protocol pool, and transfer the obtained token pair(s) to the vault.
Passive Rebalancing:
The strategy will set two Positions:
Base Position: Place an order symmetrically revolving the current price according to the base threshold
Limit Position: To place an order according to the limit threshold, either slightly higher or lower than the current price. This Position assists the strategy to rebalance, enabling the token pair's ratio to approach 50:50.
Every 24 hours, the keeper will call the rebalance method, which will not swap tokens at runtime, but will adjust the Base Position and Limit Position according to the updated price and token balance. The Limit Position is as close to the current market price as the limit order. If the price moves in this direction, the second position will also be active, receiving a transaction fee.
Last updated