6% Instant Return 1 Eth Txn with 4 Protocols (No Solidity Code)

In the post, I'll give a quick example demonstrating the easiness for developers and users to optimize on the opportunities available in DeFi. In essence, developers can build complex use-cases with no solidity, and protocols can unlock exciting use-cases which were not possible before or way harder to do — in general, making DeFi way more useful and stable.

Recently, an execution assisted me in earning 6% on the stablecoin assets in just 1 ethereum transaction using 4 protocols under the hood, while making DAI stable in the process.

Such types of use cases usually take long to execute due to weeks of solidity coding together with a long period to go through the audit process - which is all cut down to just 5 minutes, with a few lines of JavaScript Code (No Solidity). All of which is possible due to DSA (coming soon). For further context about motivation and likely use cases, read the accompanying blog post.

To give you some context, DAI price has been over $1 ($1.02) for a month now due to the increased demand for DAI than supply. To meet the excessive demand, MakerDAO governance recently decided to add USDC as a new collateral type, which means with relatively stable USDC ($1), one can buy 1.02 USDC in exchange for 1 DAI.

Explained: 6% Instant Return

With an initial capital of 12,500 DAI in my DeFi Smart Account (DSA), I decided to go 4x leverage on a USDC Vault. All in one ETH transaction without any Solidity code, interacting with 4 protocols.

Current Balance: 12,500 DAI

1. Borrowed 37,500 DAI via flash loan. Renewed balance: 50,000 (37,500 + 12,500) DAI
2. Swapped 50,000 DAI into 50,761 USDC via Oasis
3. Opened a new USDC Maker Vault
4. Locked 50,761 USDC in Vault
5. Borrowed 37,500 DAI from Vault.
6. Repaid 37,500 DAI flash loan (paying back the step 1)

Note: The flash loan is powered by DSA's inbuilt pool, designed in a manner which opens up endless possibilities of money legos.

Current Position: 50,761 USDC Collateral and 37,500 DAI Debt which results in 13,261 balance (50,761 – 37,500).

In short, I started with 12,500 DAI stablecoin and ended up with 13,261 USDC stablecoin. That's $761 profit with 12,500 DAI as initial capital which is 6% ROI (761 / 12500 * 100)

☝️ the scary etherscan transaction ☝️

As stated earlier, such kinds of use cases take weeks and require Solidity code to get started which is why we found it worthwhile to spend time in building a new DeFi standard from scratch by allowing the DeFi applications to be built securely by composing secure protocols so the base layers can focus on being protected, while the DeFi apps can focus on creating innovative use cases.

DeFi Smart Account transactions are secure by default, since no new smart contracts are deployed, which vastly simplifies and removes attack vectors.

Once a protocol connector is added to the DSA platform, it instantly becomes composable with the entire DeFi ecosystem, making it more stable, optimized, and interoperable. Also, resulting in easier ways of development without needing to learn Solidity i.e., developers who don't even know Solidity can get started and create powerful dapps, add highly curated use cases and build a business modal in the process.

The DSA contracts are already audited and are currently being thoroughly tested to eliminate casualties. Keep an eye out on our next announcement!

Written by Samyak Jain