Stake DAO Integrates Chainlink
Stake DAO integrates Chainlink Keepers on the Ethereum mainnet. By integrating the industry-leading decentralized oracle network, Stake DAO now has access to a secure and cost-efficient smart contract automation service to help us automate key smart contract functions.
Decentralizing in this way is meaningful to Stake DAO as it aligns with one of its core goals and that is to create complete systems that can scale and function without the need for active management. They have integrated Chainlink Keepers to help them automate fee distribution, deploy user funds into strategies, and automatically compound rewards. This integration helps them to take another step towards becoming fully decentralized whilst rewarding users and improving performance.
Stake DAO decided to use Chainlink Keepers because they operate on the same pool of time-tested, provably reliable node operators that currently help secure tens of billions of dollars across DeFi
What are Stake DAO strategies?
Stake DAO strategies are built on top of the Curve Finance protocol, leveraging the veCRV owned by Stake DAO to boost the yield for all its users.
Passive USD Strategy
This strategy invests USD stablecoins (DAI, USDC, USDT) deposited by the users into the Curve Liquidity Pool (3pool). The strategy earns trading fees based on the pool trading volume. It also earns additional CRV token rewards from Curve.
The strategy rewards are periodically compounded to maximize returns. Initially, the deposit of users’ USD stablecoins and the compounding of the rewards was done manually. This is to optimize gas fees, but as the number of strategies increased it slowly became less effective and too time-consuming. Chainlink Keepers allows us to automate both depositing and compounding in a very effective way.
Chainlink Keepers is a decentralized service purpose-built to manage tasks on behalf of smart contracts. The Chainlink Keepers serve as decentralized automation bots that wake up smart contracts when they need to perform critical on-chain functions. It usually takes place at regular time intervals (e.g., every day at the same time) or based on external events (e.g., when an asset hits a specific price).
ABOUT Stake DAO
Stake DAO is a non-custodial platform that unlocks value and liquidity from decentralized markets. Both protocols and users can use Stake DAO to maximize their yield with passive strategies. Get access to capital-efficient voting power, deposit into DeFi options vaults, and more.
ABOUT Chainlink
Chainlink is the industry standard for building, accessing, and selling oracle services. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API. It also leverages secure off-chain computations for enabling feature-rich applications.
RESOURCES
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