A deposit loop consists in borrow DAI multiple times and automatically selling rewards (Matic or AVAX) and this results in an APY boosting from ~7.5% to ~25%. But you need to do this task manually on Aave and beyond taking a couple of minutes (~20 min), incurs the responsibility of harvesting incentives, swapping them, and adding back to the pool, with the risk of being liquidated if you forget about swapping the incentive rewards.
What it does
Money Multiplier allows one to build or exit a position with just one click. The protocol achieves the same effects of lending and borrowing ~15 times and that represents ~99% of the DAI that can be borrowed from the initial deposit. Beyond that, we automated harvesting to protect the debt position.
How we built it
We use flash loans to make it possible to have the same effects of lending and borrowing ~15 times without spending tons of gas. For the automated harvesting, we use Gelato and Autonomy.
Challenges we ran into
Connecting the interface and the smart contract was tough We got 2 out of 5 contracts that are not working properly
Accomplishments that we're proud of
1) Found 11 people only on Saturday that use that strategy manually and are willing to use our product on Sunday. 2) Money Multiplier is live and working 3) Using flash loans for the first time 4) Creating an ERC20 token that keeps indexed even though we are holding Aave tokens
What we learned
Although this strategy may look obvious to some, it could seem new to others. By building Money Multiplier, beyond making the strategy easier to folks that already use it, the strategy can be spread out easily — democratizing higher returns for more people.
From a technical perspective, it was pretty to learn more about Aave.
What's next for Money Multiplier
1) Ship in production 2) Warn users that a specific deposit is no longer profitable 3) Update profitability data more granularly