Money market allow you to lend out your cryptocurrencies at relatively low risk and earn passive income. Splitting the interest from the principal allows you to earn FREE cryptocurrencies while always keeping your initial investment.
What it does
dDAI enables users to earn interests from lending out DAI on Fulcrum and reinvest those interest automatically into any other asset class using DeFi recipes i.e. ETH, BTX, KNC, synthetic assets, etc. or a combination of different assets. Here are some examples of the DeFi recipes we implemented:
It reinvest dDAI earnings and buys ETH on Kyber
It reinvest dDAI earnings and buys BTC on Kyber
ETH 4x Long
It reinvest dDAI earnings and buys Fulcrum pToken (pLETH4x)
BTC 4x Long
It reinvest dDAI earnings and buys BFulcrum pToken (pLBTC4x)
Store of Value
It reinvest dDAI earnings and converts them in 50/50% ETH/BTC
ETH or BTC Maximalist
Buys 50% ETH and 50% its invert synthetic token (iETH)
How we built it
We built a contract called dDAI which is a token 1:1 backed by DAI and lends it out on Fulcrum. When the interest is claimed it gets send to the DeFi recipes the user set up. These convert the interest in DAI to the preferred assets.
The UI is build in react.
We integrated the following tech partners:
Used for lending out DAI and in the PTokens are used in some recipes to open up leveraged positions.
Extensively used in multiple recipes to swap dai to other assets.
Used in multiple recipes to convert dai to synthetic assets.
Challenges we ran into
The main challenge was testing everything on kovan the istanbul hard fork broke kyber which broke the fulcrum P tokens.
Accomplishments that we are proud of
We are proud that we were able to create a user experience which is quite easy for non tech savvy people to use and integrates with multiple DeFi protocols in one place.
What we have learned
We have discovered the power of DeFi recipes. These allow to abstract otherwise cumbersome multi transaction interactions into one simple action by a user. We will take these lessons to improve dDAI and future projects.
What's next for dDAI
- Create a more generic approach to DeFi recipes.
- Implement dollar cost averaging on the UI side
- Add GSN support to the frontend
- Audit smart contracts
- Mainnet launch
- DexWallet integration