(Eth is Money)² = dEth

Shurrup and take my money!

tl;dr

Why you should care about dEth

How it works

Ethereum and MakerDAO

DeFiSaver

dEth tokenisation

Fees

  1. Protocol fee. This is a fixed 0.9% and is goes to rewarding $FRY hodlers by increasing their permafrost. (link)
  2. Automation fees. Currently set to 1%. This goes directly into the CDP and is meant to compensate longer term dEth holders when dEth holders enter or exit the contract. Entering or exiting will likely move the collateralization ratio away from 200% and may incur rebalancing fees later.
  3. Rebalancing fees. This is when DeFiSaver’s automation system pulls the CDP collateralization ratio up from 170% back to 200% or when it takes it back down from 230% to 200%. This is quite an advanced system and uses a combination of flashloans and advanced AMM routing to perform the relevant market actions. DeFiSaver charges 0.3% of the size of the rebalance amount for this. Additionally they recoup the gas fees, up to a maximum of 5%, from the collateral in the underlying dEth CDP.

Potential upside

Longer term

Gas efficiency

Risks

Smart contract

Progressive decentralisation

Price

Default

Starvation

Intervention modes

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