The design of this system allows any asset that has a financial primitive to be insured, be it a base asset such as DAI, or a composite asset such as aDAI or yDAI.
- 1.Lending - Where assets are lent out via lenders such as Aave, Compound, and dYdX.
- 2.Trading - Assets provided to Uniswap, Balancer, and Curve earn trading fees.
- 3.Liquidity incentives - Protocols and markets such as Compound, Balancer, and Curve provide liquidity incentives.By applying the voting power of governance tokens, the power of delegated funds are used to vote for additional incentive rewards for providing liquidity, which can sometimes be reward multipliers for volume users. These multipliers can greatly enhance the ROI of deposited funds.