scDAI
Blockchain: Ethereum
Overview
scDAI is an ERC4626-compliant wrapper contract for scSDAI, allowing users to interact with scSDAI directly using DAI instead of sDAI.
Mechanism
Deposits: Users deposit DAI into the scDAI contract. The contract converts DAI into sDAI, which is then deposited into the scSDAI vault for yield generation.
Yield Generation: Yield is generated entirely within the scSDAI vault. The scDAI contract itself does not implement any additional yield-generating mechanisms.
Withdrawals: When a user initiates a withdrawal, scDAI redeems the corresponding scSDAI shares, converts them back into sDAI, and finally into DAI, transferring the resulting DAI to the user.
Portfolio Rebalancing
As a utility wrapper, scDAI does not handle portfolio rebalancing or implement specific gas optimization strategies. These functionalities are managed by the scSDAI vault.
Risk Mitigation
Smart Contract Risk
The scDAI contract has not undergone external audits due to its limited functionality, which is restricted to converting DAI to sDAI (and vice versa) and facilitating interactions with scSDAI.
Liquidation Risk
There is no additional liquidation risk beyond what is inherent in the scSDAI strategy.
Audits
The scDAI contract code has not been audited by external auditors.
Conclusion
scDAI is a straightforward utility contract that simplifies user interactions with the scSDAI vault by enabling DAI deposits and withdrawals. It inherits the benefits and risks of the underlying scSDAI strategy while offering a user-friendly interface for DAI-based participation.
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