Navigating the complexities of DeFi and managing yield-generating activities can be a time-consuming and daunting task. This is why SupremeDAO is launching its Genesis Strategy, an MVP that will be the first in a series of high-yield strategies, ultimately to be consolidated under a single token, YAI.

PowerAgent is a dePIN network of Keeper nodes, designed to reliably automate on-chain strategies and actions. For SupremeDAO, PowerPool is a tool to enhance yield strategies by actively managing positions and leveraging real-time data to optimize returns and mitigate risks. Genesis Strategy is designed to harness the power of automation and DeFi technologies to maximize returns on Wrapped Staked Ether (wstETH) holdings.

By integrating with leading DeFi protocols like Curve Finance, Aura Finance, and implementing veTokenomiks with Paladin, Genesis Strategy delivers a seamless and optimized path to grow holdings. This is achieved with a high degree of safety as everything is automated and the "health" of the strategy is also monitored automatically.

The ETH Leverage Yield Strategy

At the heart of the Genesis Strategy is the ETH Leverage Yield Strategy. This strategy leverages a multi-faceted integration with leading DeFi protocols to generate enhanced yields.

The core components are:

1. Leveraging wstETH as Collateral: The user's wstETH is used as collateral to borrow crvUSD, the stablecoin native to the Curve ecosystem.

2. Deploying Borrowed Funds into Aura Finance: The borrowed crvUSD is then deployed into high-yield farming opportunities on the Aura platform. Aura Finance is a leading DeFi protocol that specializes in optimizing yields across the Curve ecosystem.

3. Automated CDP Management (and future Paladin Integration): To mitigate and further minimize risks, the strategy automates the management of the Collateralized Debt Position (CDP) on Curve. In the future, the strategy will integrate with the Paladin platform to leverage generated yields to enhance overall returns. (Presently, the DAO manually bribes on Paladin.)

This strategy simplifies the investment process while aiming to deliver superior returns directly in wstETH, compared to traditional manual yield farming methods that generate yield in less desirable cryptocurrencies.

PowerAgent Integration

At the core of the ETH Leverage Yield Strategy is the integration of PowerAgent technology developed by PowePool Finance. PowerAgent is a dynamic tool designed to enhance yield strategies by actively managing positions and leveraging real-time data to optimize returns and mitigate risks.

This sophisticated algorithm-driven system plays a crucial role in automating and streamlining the process, eliminating the need for manual intervention. By delegating these complex tasks to PowerAgent, users can benefit from a hands-off approach to yield generation.

This automation simplifies the investment process, eliminates manual actions and therefore human factor, and ensures the consistent implementation of the strategy's parameters. Additionally, security is enhanced via continuous monitoring of market conditions, so that strategies are adjusted proactively, for example by closing the debt on Curve in the event of falling prices.

Detailed Breakdown of the Strategy

The ETH Leverage Yield Strategy begins by leveraging the user's wstETH holdings to generate additional returns through yield farming on the Aura Finance platform enhanced by the automation capabilities of PowerAgent.

The step-by-step process is as follows:

Acquire wstETH on curve.fi. Open a CDP on crvUSD.curve.fi. Borrow crvUSD. Exchange crvUSD for USDC on Curve. Provide liquidity to the D2D/USDC pool on Balancer. Stake the LP tokens on Aura Finance.

This multi-step process is fully automated by PowerAgent, saving time and increasing security. It interfaces seamlessly with the various DeFi protocols involved, scheduling and executing transactions, managing positions, and optimizing the moves between different steps without manual intervention. This allows the user to leverage their wstETH holdings to generate substantial yields through Aura while minimizing exposure to volatility and operational errors.

Collateral Health Monitoring

SupremeDAO's strategy leverages Curve's "soft liquidation" feature, which offers lower liquidation risk than traditional CDPs. The strategy employs automated collateral health monitoring to mitigate potential losses during volatility.

The system regularly checks the CDP's collateral health ratio, maintaining it above 30%. If the ratio drops below this threshold, farmed CRV tokens are automatically sold to purchase crvUSD and increase the health ratio. This protects users' wstETH from market volatility-related losses.

When users wish to withdraw their investments and yields, the process involves the following:

1. Withdrawing LP tokens from Aura: The user initiates withdrawal by retrieving the liquidity provider (LP) tokens from Aura.

2. Closing a portion of the CDP on Curve: The retrieved LP tokens are then used to close a corresponding portion of the user's CDP on Curve.

3. Withdrawing the corresponding amount of wstETH from the CDP: As the CDP is closed, the user is able to withdraw the equivalent amount of wstETH that was initially provided as collateral.

4. Transferring the wstETH to the user: The withdrawn wstETH is then sent directly to the user..

This withdrawal mechanism ensures that users can retrieve their original wstETH investment, along with the accumulated yields, without having to navigate the underlying DeFi protocols.

In Summary

The Genesis Strategy represents a groundbreaking approach to maximizing returns on Ethereum investors' wstETH holdings. By leveraging the power of SupremeDAO's automated capabilities, investors can unlock new possibilities for yield generation, while benefiting from a streamlined and risk-mitigated investment experience.

Disclaimer: Before engaging with SupremeDAO's ETH Leverage Yield Strategy, we encourage users to thoroughly review the detailed documentation, terms, and conditions provided. It is crucial to understand the strategy's mechanics, as well as the associated market risks, to make an informed decision about participation. We recommend using the user interface to preview both deposits and withdrawals for current performance estimates.

About SupremeDAO

SupremeDAO is a community-led DeFi protocol that provides a safe and transparent way to maximize yields with its single-token solution, YAI. It offers users various fully automated, complex, multi-step DeFi strategies. SupremeDAO uses automated algorithms to dynamically allocate assets into high-yield farming opportunities, ensuring maximum profitability with managed risks.

Learn more about SupremeDAO and its mission at supremedao.xyz.

About PowerPool

PowerPool is a DAO-managed protocol, focused on operating a decentralized and autonomous network for guaranteed transaction execution and off-chain computations – the PowerAgent Keepers network. Its mission is to provide all DeFi protocols, dApps, and their users with decentralized, reliable, and cost-effective smart contract automation for all kinds of operations and tasks.

The PowerAgent network is launched on Gnosis Chain, Arbitrum One, and will soon be available on Ethereum and other EVM-compatible chains (Polygon, BNB, NeonEVM, Scroll, and others) in the near future.

Learn more about PowerPool and PowerAgent by going to their Discord server or follow PowerPool Twitter.