PolyGains DegenVault uses Brahma’s pricipal protected framework, which allows to boost yield harvested from trusted liquidity pools by means of signal-driven derivative trades. Trading gains are compounded back to the Base Pool.
The principal always remain safely in the Base Pool, while only the weekly Yield is used to take leveraged trades, boosting the yield.
Here is an outline of the strategy steps:
- 1.The Vault receives $MATIC or $wMATIC deposits.
- 2.The funds are safely parked and earn yield in the stMATIC / MATIC Balancer and Curve V2 Pools (Base Pools).
- 3.The Base Yield is harvested weekly and sent to Perpetual Protocol.
- 4.This yield is used to take a leveraged bet based on an algorithmic momentum strategy trained to provide high-confidence signals.
- 5.The position's risk is monitored with a dynamic stop-loss algorithm.
- 6.All trading profits are compounded back into the strategy.
For those familiar with the PMUSDC vault, you will note the similarities. The strategy is centred around preserving the users' hard-earned capital but still looks to provide enhanced returns by taking regular small, but leveraged, bets to generate asymmetric payoffs.