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Different yield strategies explained
Open Strategy
In this strategy, no third-party protocols are used. Hence, a users' funds will remain in the HaloFi smart contract, and not be moved into any third-party protocol. This enables the creation of savings pool denominated in (almost) any ERC-20 token that is available on our supported blockchain networks. This strategy still allows additional incentive tokens to be added to the pool, to be shared between all winning players.
Supported assets
Most available ERC-20 tokens on Celo, Polygon and Base are supported.
Unsupported assets
Tokens with a built-in 'Burn on transfer' or 'Fee on transfer' are not supported. Neither supported are ERC-721 tokens, ERC-1155 and most other token standards.
Aave v3
Interacts with theAave V3 protocol (or forks) to generate lending interest and additional incentive rewards for the HaloFi challenge. Deposits funds from the HaloFi challenge contract into Aave v3 contracts, and withdraws them again. Any incentive reward tokens are not converted, but rather distributed back to users as is. Available on Polygon.
We are working to enable Aave strategies on the Base blockchain, as soon as Aave v3 becomes available on Base.
Aave v2 & Moola
Interacts with theAave V2 protocol (or forks such as Moola) to generate lending interest for the HaloFi challenge. Deposits and withdraw funds from the HaloFi challenge contract into Aave v2 contracts. Any incentive reward tokens are not converted, but rather distributed back to users as is.
Interacts with the Curve Finance protocol to earn swap fees, lending interest and additional incentive rewards. This strategydepositing funds from the challenge contract into Curve StableSwap or Curve volatile pools, and withdraws them again in the same initial currency. Any token incentives are distributed as is (e.g. CRV tokens). Current pools supported are the AAVE StableSwap Pool,the Atricrypto volatile Pool and the stMATIC StableSwap Pool on Polygon. We recently also added support for the Tripool (stablecoin) Pool on Celo.
We are working to enable Curve strategies on the Base blockchain, as soon as Curve Finance becomes available on Base.
These strategies are subject to slippage and impermanent loss.
Curve Aave (Stable)
This strategy has price exposure to the three largest stablecoins on Polygon: DAI, USDC and USDT. This strategy uses a Curve lending pool, which means it earns interest from lending as well as trading fees. It also earns CRV token incentives.
External link: https://polygon.curve.fi/aave
Supported assets: DAI, USDC, USDT (on Polygon)
The main risk is the permanent loss of a stablecoin peg. If one of the stablecoins in the Curve pool goes significantly down below the peg of 1.0 and does not return to the peg, it'll effectively mean that the strategy holds almost all its liquidity in that currency. When a user then withdraws their funds from the challenge again (and the depegged currency is different from the one initially used to deposit into HaloFi) it could mean that a user gets back fewer tokens than were initially deposited.
Curve Atricrypto (Volatile)
This strategy has price exposure to the three largest stablecoins (DAI, USDC and USDT) as well as to Bitcoin and Ethereum, on Polygon. Note that his pool is continuously rebalancing and these are volatile assets. Hence, it is a high risk strategy. This strategy uses a Curve lending pool, which means it earns interest from lending as well as trading fees. It also earns CRV token incentives.
External link: https://polygon.curve.fi/atricrypto3
Supported assets: DAI, USDC, USDT, WETH, WBTC (on Polygon)
Curve stMATIC-MATIC (Stable)
This strategy has price exposure to staked MATIC (by Lido Finance) and MATIC. These are volatile assets. Hence, it is a high risk strategy. This strategy uses a Curve StableSwap pool on Polygon, which means it earns interest from trading fees. It also earns LDO and/or CRV token incentives.
This strategy has price exposure to the three largest stablecoins on Celo: cUSD, USDC (bridged via Wormhole) and USDT (bridged via Wormhole). This strategy uses a Curve StableSwap pool, which means it earns additional LP tokens from trading fees. It also earns CRV token incentives.
External link: https://curve.fi/#/celo/pools/factory-v2-1/deposit
Supported assets: cUSD, USDC (Wormhole), USDT (Wormhole) - (on Celo)
The main risk is the permanent loss of a stablecoin peg. If one of the stablecoins in the Curve pool goes significantly down below the peg of 1.0 and does not return to the peg, it'll effectively mean that the strategy holds almost all its liquidity in that currency. When a user then withdraws their funds from the challenge again (and the depegged currency is different from the one initially used to deposit into HaloFi) it could mean that a user gets back fewer tokens than were initially deposited.
You can learn more about how Curve Finance works below:
