Draft CIP-3 Achieve optimal yield through combination strategyYour Proposal Title
Draft CIP-3 Achieve optimal yield through combination strategy
Motivation
Currently, layer2.finance only has strategies with a single protocol. In order to earn higher yield, users need to manually redistribute balance to another strategy with higher yield. Although it is cheap to move money around on layer 2, but it still takes a lot of time and effort to monitor and switch strategy.
Therefore, I propose a strategy by combing multiple protocols to achieve optimal yield. It can also help save time and money for user to rebalance fund.
Proposal
The strategy needs to contain over two protocols and implement following features for its functions
aggregateCommit
When users add fund to the strategy, the strategy will commit to the protocol with higher yield
aggregateUncommit
When users withdraw fund from the strategy, the strategy will redeem fund from the protocol with lowest yield first. If the lowest yield protocol does not have enough fund, it will redeem fund from next lowest yield protocol. Repeat util all requested fund has been redeem.
harvest
The strategy will automatically harvest liquidity mining reward for all protocols.
While harvesting, the strategy will also try to automatically rebalance fund from lower yield protocols to the highest yield protocol.
