Thread by @Awinish_M

I recently discovered a new manner to DCA your way into assets with a discount of 10 - 15%. An additional benefit here is that you, as a user, will contribute to the stability and longevity of the protocol as well.

👇🏽🧵

/1 The protocol that can be used to DCA your way into a new asset is @vestaxyz which is a stablecoin issuer on Arbitrum. Here’s a thread I wrote earlier about this project.

https://twitter.com/vestafinance/status/1478545995654782979?s=20&t=gfgdXeTQz9h7YINkfQK4Zw

/2 Users can open a vault and mint $VST with these assets as collateral but must maintain a Minimal Collateralization Ratio (MCR) above these percentages to prevent liquidation:
⁃$ETH - 110%
⁃$renBTC - 110%
⁃$gOHM - 150%
⁃$GMX - 150%
⁃$DPX - 150%
⁃$GLP - 120%

/3 The project allows users to participate in a crucial part of the protocol which is the ‘Stability Staking Pool’. As a user you can choose to deposit your $VST in one of the six aforementioned pools.

/4 Whenever a liquidation of a vault occurs (the treshold reaching a lower % than the MCR), the vault of the liquidated address first will be distributed among the $VST stakers in the designated stability pool.

/5 If you stake $VST in a pool of your choice, you’ll be getting liquidated vaults at a discount proportionally to your allocation in the designated stability pool for that certain asset.

/6 Since the liquidation bonus on $ETH is 10%, a $VST depositor can get $1100 worth of $ETH and only paying $1000 for it by depositing his $VST in the pool. Note that this also applies to other assets but have a liquidation bonus of 15% (except $renBTC).

/7 In reality it will be slightly lower since the treshold to be liquidated is under 10% (on $ETH). If a vault gets liquidated, a proportional amount of $VST will be burnt as the collateral will be released to the $VST stakers.

/8 Something that’s very cool as well is that if nobody get’s liquidated while your $VST is in the pool, you’ll be farming $VSTA rewards in the meantime and thus earns a passive yield.

/9 If you want to participate in the liquidation process but don’t want to hold the asset and also don’t want to manually sell the assets, @vestafinance got you covered. They’ve partnered up with @bprotocoleth and they have automated this process for you.

/10 If you’re looking to get exposure to one of the aforementioned assets, this can be a good opportunity to DCA into an asset with a discount compared to current market prices.

Note: $VST is a bit off-peg but I don’t think it’s a big problem since anyone can arb it back to peg.

/11 This thread is no financial advise and I encourage everyone to do their own research before investing.

/12 Found this thread interesting? Please give me a:
⁃Like❤️
⁃RT🗣
And follow me @Awinish_M to stay up-to-date for #DeFi, #farming strategies & other (quality) content.

/13 I’d really love it if you could help me by retweeting the first tweet so we’ll reach more people!

https://twitter.com/awinish_m/status/1573386754459041793

Tagged the wrong account, the right account is @vestafinance.