Strategies
Windpools are connected to different DeFi protocols for higher yield including DEXes and lending protocols.
The growth engine is using two main strategies: Multi-Pair-Balancing & Single-Pair-Balancing
Windpools default strategy is targeting staking on DEXes because of higher APY. By default, a DeFi user cannot stake a single asset on an AMM protocol (eg. Uniswap, ETH-USDT) where a user is required to split his favorite long-term holding asset (eg ETH) in two amounts in order to achieve AMM staking. Windpool's mechanism allows users to stake their favorite asset by rebalancing and pairing different users liquidity from the Nest contract.
Example:
- 1.User A deposit USDT on Windpools
- 2.User B deposit ETH on Windpools
- 3.Rebalancing ETH & USDT from Windpools to Uniswap V3 ETH-USDT pool
- 4.Remained unpaired amount from USDT or ETH will be rebalanced on different pairs or protocols using both strategies
In this scenario, both USDT and ETH users can earn the same yield as they would have deposited a paired amount with highly competitive APY on stable coins.
Multi-Pair-Rebalancing mechanism takes full advantage of Uniswap V3 new capital efficiency & other AMMs to increase users earnings.
This balancing strategy is used as a Multi-Pair-Balancing fallback option in case of remained unbalanced assets on Nest contract and is main targeting Lending protocols or single paired pools.
Last modified 1yr ago