How is the profit generated? What is the yield farming model?
The DeFireX Smart Contract is using flash loans on dYdX to quadruple the user's deposit inside the Compound which increases the rewards in COMP tokens. After that the COMP tokens are converted to DAI via Uniswap platform. All in all, the user is able to withdraw the accrued interest in DAI stablecoins.
We use the dYdX liquidity to perform the flashloans with leverage up to $ 35 million by paying a small commission to the service. We use Uniswap to get accrued income fixed in stablecoins.
By pooling liquidity in a single pool, profit is able to be withdrawn within one transaction on the DeFireX platform. This solution helps to save up on the commissions in the network.
We have detailed this in our Medium article.
