|Author||Edson Ayllon (relativeread), Philippe|
Through user interviews, managers have expressed interest in strategies utilizing leverage, as well as depositing assets such as stable coins for yield.
Adding Aave would introduce the following:
- Interest on assets through lending
- Leveraged shorts and longs through borrowing
- Yield farming strategies through borrowing and using borrowed funds on other protocols
- Hedging strategies utilizing shorts
Aave is a lending and borrowing platform on Ethereum mainnet and Polygon.
Aave will be added by adding a new transaction guard to dHEDGE V2 contracts whitelisting Aave as a protocol.
The initial implementation will allow lending multiple assets, and borrowing one asset for simplicity and speed of implementation.
To allow for withdrawals with open borrowing positions, Aave’s flash loan service will be used within the guard.