“ETH believer” Starter Pack for Arbitrum: PowerPool’s ETHIndia project

A user-friendly, secure, and fully automated strategy for maximizing your ETH yields

This weekend, PowerPool’s team had the opportunity to participate in the prestigious ETHGlobal event in Bengaluru, India. The event provided a platform for engaging in insightful conversations with top developers in the space and dedicated time to hacking away at DeFi automation with PowerAgent V2.

The team dedicated the majority of their time at the event to hacking and competing for prizes from multiple event sponsors. After 48 hours of intense contemplation and building, they successfully developed a fully automated, user-friendly starter pack for wstETH yield generation strategy that meets the high standards inherent to this event.

The “ETH believer” Starter Pack for Arbitrum

Our team has developed an automated yield generation strategy specifically designed for true ETH believers. This innovative solution allows both experienced investors and newcomers to generate yields from ETH with ease.

By leveraging a sophisticated combination of borrowing, staking, and auto-compounding yields, coupled with PowerAgent’s reliable and cost-effective automation, our strategy can deliver impressive APRs of approximately 25% without the need for any manual intervention. This project is designed to provide users with a hassle-free and lucrative way to maximize their returns on ETH investments.

This strategy consists of three parts:

1. WETH accumulation and wstETH purchase. The strategy begins with a gradual accumulation of $WETH in GMX using an automatic DCA (Dollar Cost Average) strategy, which is then regularly exchanged for $wstETH in Balancer.

2. The “Happy HODL” yield generation. In the second part of the strategy, the purchased $wstETH is utilized as collateral in AAVE to borrow $USDC, which is then deposited in the DOLA/USDC pool at Aura Finance to generate yield through $AURA, $BAL, and $ARB. These yields are automatically swapped to $wstETH and compounded in AAVE to increase future gains.

3. AAVE liquidation protection. To protect the CDP, an automated algorithm continuously monitors the AAVE health ratio price and adjusts borrowing or repayment of $USDC accordingly. The “ideal” health ratio is set at 1.25.

Overall, PowerPool’s team has created an easy-to-use, reliable, and secure “starter pack” for users looking to maximize their ETH yields while maintaining complete autonomy of all their transactions.

Get the full code for this project in our GitHub

Why Arbitrum?

In order for this strategy to be successful, it is essential that on-chain transactions are carried out consistently and reliably. This is why it is crucial to deploy it on a network with low transaction fees in order to offer users the highest possible APRs.

After careful consideration, we chose to deploy on Arbitrum due to its reputation as one of the most cost-effective blockchains, with an average transaction fee of approximately $0.5. This strategic move guarantees that the project is well-prepared to deliver optimal returns for users.

Where does the PowerAgent network come into play?

The PowerAgent network is integral to the entire automated strategy, which operates seamlessly without the need for any manual intervention. Users simply need to supply an initial amount of stablecoins ($USDC or $USDT), and the PowerAgent Keepers take care of the rest.

This includes:

• Purchasing $WETH using Dollar Cost Averaging (DCA)
• Wrapping $WETH to $wstETH
• Borrowing $USDC using $wstETH
• Staking $USDC
• Claiming yields
• Repeating the process

Additionally, for each Collateralized Debt Position (CDP) on AAVE, a liquidation protection Job is created in PowerAgent:

• If the AAVE position health ratio price rises above 1.25, the network instructs to borrow more USDC and add it to the pool on Aura
• Conversely, if the AAVE position health ratio price goes down, Keepers take someUSDC out of the pool, partially pay off the debt, and restore health to 1.25 to protect from liquidation

The automation provided by PowerAgent is crucial for such complex logic, as it ensures that transactions are executed reliably and without the risk of failure. Without this source of decentralized and reliable automation, users could potentially suffer severe financial loss if a protection transaction fails to execute.

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