Product Docs
Yield Compounding Strategy
Single asset collateral tokens are automatically assigned this strategy. The yield or interest earned by the deposited collateral gets reinvested / sold for the same asset as was deposited. We currently use yield yak strategies for these sets of assets.
Example: A user deposits 100 AVAX and borrows 1000 MONEY. The AVAX collateral is deposited on select partner protocols like Banker Joe, AAVE or Benqi. The AVAX continually earns interest plus the protocol Governance token, which this strategy sells for more AVAX, increasing the borrower's total AVAX collateral.
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