Multi Strategy v2
Multi Strategies is the concept of yield farming using multiple protocols. The goal of Multi Strategies is to provide a good auto compound return on single assets without impermanent loss risk through the automated integration of multiple yield farming solutions.
Multi Strategy works as a slightly leveraged and automated yield farming strategy. Technically, Multi Strategies can be liquidated if the price of the underlying asset drops by approximately 60% in a few blocks.
Multi Strategy manages the assets automatically so that when there is a price drop, it repays part of the loan on QiDao, increasing the collateral to debt ratio. Due to the rare condition of price drops close to 60% in a few blocks and the systematic repayment of loans on QiDao as the price drops, the risk of asset liquidation in Multi Strategy is close to zero.
AMB v2 has four steps:
- AAVE - deposit underlying token in AAVE to receive amToken
- QiDao - deposit amToken in the yield part of QiDao to create camToken
- MaiStablecoin - create a vault on QiDao for the camToken and borrow MAI token
- BalVault - deposit MAI token in the Balancer pool
AMB v2 has a 0.3% deposit fee to cover MAI repayment commission and Balancer swap fees.
Rewards on QiDao and Balancer are claimed on a weekly basis. AMB v2 also receives rewards from TETU emissions, these rewards are approximately 10% of the buyback of the strategies.
The Multi Strategy structure causes share price fluctuations that affect the amount of deposited assets. Multi Strategy earnings are auto compounded, this makes the share price trend to grow over time. This way the Multi Strategy shares will look like an interest bearing token.
Multi Strategy's APR does not drop if the TVL in the vault increases too much as it usually does with regular yield farming vaults. This happens because incentives from Balancer and QiDao are high and Multi Strategy auto compound the earnings. This scenario gives Multi Strategy a high capability of TVL in its vaults.
If there is not enough MAI liquidity on QiDao it will not be possible to deposit in the Multi Strategy. The maximum possible deposit is displayed on the vault page. If the MAI price is too high, the withdrawal transaction may be reverted and it would be better to wait a while.