pDAI Collateral Factor
The current leverage on the pDAI is around 2 with 17mm in DAI in the jar.
The current APR of the DAI jar currently is around 9.9% with that given leverage.
All the following information is based on the following calculation app:
The following values in the table are an APR with no compounding from the jar.
These rates are lower than the actual jar performance will be.
Raw Strategy APR
The first chart is the raw strategy APR given the calculations from the COMP calculator.
The second chart is the jar APR minus the dev fees, with the yearly income expected from that strategy.
There has been discussion in the discord around increasing the leverage of the strategy so this threads is to discuss the merits of doing so. A few points I have to list myself:
- Increase in jar user and protocol earnings, up to a max of almost $300k a year.
- Increase in chance of liquidation (many have pointed out even at 3.7x is very low)
- Potential increase in TVL due to higher rates further compounding earnings
I would like to start a discussion here on what leverage will be suitable for the community and the pros and cons associated with that leverage option
This proposal is not my own but rather the collective voice of many on discord who would not otherwise have had a voice on the forums. Once we have had ample discussion I will attach a poll with options related to the outcomes of this discussion.