# ETH-DAI

## General Information

{% hint style="info" %}
ETH-DAI strategy is available at: [**https://forcedao.com/strategies**](https://forcedao.com/strategies)
{% endhint %}

| Category     | Details                     |
| ------------ | --------------------------- |
| Symbol       | xETH-DAI                    |
| Risk Profile | Low                         |
| Strategy     | Pooling + Compound Interest |
| Protocols    | SushiSwap                   |

### How does the strategy make money?

All Force "Yield Automation" strategies generate revenue by investing the asset a user deposits, into an "incentivized" financial market.

In the case of the ETH-DAI strategy, the  "incentivized" financial market is SushiSwap, where yield is generated by:

* **Pooling Fees**: Native APY generated by providing liquidity to SushiSwap's ETH-DAI AMM pool.
* **Compound Interest:** Liquidating the SUSHI incentive rewards in exchange for ETH-DAI LP tokens, which is then reinvested into the user's original position.

### How does the reward boost work?

After a user deposits SushiSwap's ETH-DAI LP tokens into the vault, the contract automatically mints and transfers xETH-DAI tokens into the user's wallet.

The xETH-DAI tokens can then be "staked" into the rewards pool, where the user can then benefit from additional token rewards in the form of xFORCE.

xFORCE are the interest-bearing version of FORCE. xFORCE yield is generated by a buy back mechanism outlined in the economics section.

### Step-By-Step Explainer

![](https://3118927276-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MRRZRRSoQIEbZPkl6JH%2F-MW6Bm3eCm93RodieC7g%2F-MW6DRJQClR0KRmttKEP%2FxETH-DAI-SLP%20Strategy.png?alt=media\&token=3517700b-8d2d-48ed-a21a-1cf4b4fc5461)

1. To invest into the strategy, users deposit `Sushiswap ETH-DAI LP` tokens into the vault contract.
2. Upon deposit, they are issued a share of the vault, represented by `xETH-DAI`. These user's funds are then made available for investment according to the pre-defined "strategy" above.
3. User's are able to deposit their `xETH-DAI` tokens into the "Rewards Pool" to receive an additional APY in xFORCE tokens.

## Contracts

| Type         | Address                                                                                                               |
| ------------ | --------------------------------------------------------------------------------------------------------------------- |
| Vault        | [0xC6961B88fD9B9C7e6A345821250a67E8e9CAb73c](https://etherscan.io/address/0xC6961B88fD9B9C7e6A345821250a67E8e9CAb73c) |
| Underlying   | [0xc3d03e4f041fd4cd388c549ee2a29a9e5075882f](https://etherscan.io/address/0xc3d03e4f041fd4cd388c549ee2a29a9e5075882f) |
| Rewards Pool | [0x5Bf886f98d83E53AAB06f831b8A153430de6c847](https://etherscan.io/address/0x5Bf886f98d83E53AAB06f831b8A153430de6c847) |