This post aims to introduce CIAN’s OHM/sDAI vault as a novel investment-use-case available to OHM holders. This tailored strategy vault purposefully combines OlympusDAO’s Cooler Loans with CIAN’s DAI/sDAI strategy vault. By doing so, CIAN intends to support the OHM’S ecosystem while accelerating the adoption of Olympus’ Cooler Loans, ultimately hoping for constructive feedback and, in the best-case scenario, delegated co-marketing support from the community and DAO.
After months of internal testing, working alongside Spark and LIDO, CIAN publicly released its DAI/sDAI strategy vault. As Olympus Cooler Loans present a powerful medium to obtain DAI, and as a large amount of Cooler Loans users still hold DAI and/or sDAI on idle, both the OHM/sDAI vault and DAI/sDAI vault could represent valuable additions to the Olympus’ ecosystem for their users to safely amplify their annual returns.
CIAN is a decentralized automation platform that builds multi-protocol delta-neutral yield strategies that mainly derive yields from LSTs, LRTs, and RWAs. The platform enables users to swiftly execute, manage, and optimize complex multi-protocol strategies while benefiting from various automation features that monitor and protect users’ collateral against embedded risks.
CIAN first launched in April 2022. At the time of writing, the protocol secures over $90m TVL, underwent 5 audits from 3 distinct auditing firms (6th in the making), and never suffered from any liquidations nor smart-contract breaches.
More about CIAN:
- DAI/sDAI vault
- OHM/sDAI vault (not available yet)
To fully understand the upcoming OHM/sDAI vault, let’s first cover the DAI/sDAI vault.
This strategy was primarily devised as an optimized safehold for sDAI and DAI long-term holders. To effectively achieve being delta-neutral, scalable, and sustainable while amplifying DSR’s yield, the strategy makes use of Lido’s staked ETH. Upon deposit, CIAN collateralizes sDAI on SPARK. With sDAI as primary collateral, the vault then executes a flashloan to hyperstake wstETH (2nd collateral) against wETH (flashloaned & borrowed).
This results in a position where users conserve the same delta-neutral exposure (similar to holding sDAI) while benefiting from the additional yield obtained by hyperstaking wstETH.
A 90-day performance chart can be found HERE.
Note: This strategy is already available and can be utilized by any DAI and/or sDAI holders.
Using similar mechanisms to the previous strategy, this vault is designed to offer OHM holders access to a fully automated way to earn yield via DSR (sDAI) and LST hyperstaking (wstETH) while conserving their initial price exposure (OHM). Using the DAI/sDAI vault as the core yield module, CIAN is currently implementing Olympus’ Cooler Loan in a new vault iteration which would be fully dedicated to the Olympus ecosystem.
Vulnerabilities: A vulnerability in CIAN, LIDO, or SPARK’s smart contracts could lead to partial or complete loss of funds. To limit this risk, CIAN has been thoroughly audited by Paladin Blockchain Security, Omniscia, and Peckshield. Lido’s audits. Spark’s audits.
Slippage: CIAN’s sDAI strategy may experience slippage during rebalancing, depending on the liquidity of wstETH and wETH available on DEXes, as well as the price difference between swapping wETH/wstETH versus native unstaking.
Liquidation: As wETH and wstETH’s prices are highly correlated, it poses minimal issues regarding liquidation risks, unless in the unlikely event of a massive wstETH black swan event. Additionally, as ⅕ of the collateral is sDAI, if wETH’s price was to skyrocket overnight, it may lead to a liquidation. To prevent these risks, CIAN implemented an automation feature that can rebalance the position collateral ratio to prevent liquidation.