As GHO floods the market, there's great news in store for AAVE holders and stablecoin enjooyers alike. With the launch of Dullahan, users can now access passive yield or reduced borrowing rates, unlocking new DeFi opportunities!
Paladin's expertise in creating passive strategies for stkAAVE holders is well-established, thanks to the pioneering v1 palstkAAVE pool - the first and only auto-compounding wrapper for stkAAVE. Before palStkAave, if you deposited stkAAVE into a contract that didn’t claim the Safety Module yield, you wouldn’t have accrued any rewards during the whole deposit period. Now, with Dullahan, we're taking our valued service to the next level by adapting it for GHO borrowing. With GHO's release, stkAAVE holders have access to new discount power, which they can lend to borrowers through the Dullahan vault in an automated way, earning fees in GHO. This allows borrowers to leverage a lower interest rate and contribute to a win-win flywheel.
A first of its kind for the AAVE ecosystem, Dullahan aims to bolster the growth and adoption of GHO, while simultaneously incentivizing stkAAVE participation. Depositors have the choice to enter the vault with either stkAAVE or AAVE, which is staked into the safety module, ensuring maximum flexibility and rewards.
We’ll briefly outline how both depositors and borrowers can interact with Dullahan.
To start earning passive yield with Dullahan, simply head to the deposit tab on the app. From there, you'll find the main deposit card that displays key statistics about the vault and your deposit. Choose whether to deposit stkAAVE or AAVE, keeping in mind that all withdrawals will be in stkAAVE. Once you've entered your deposit amount, approve the transaction and deposit and stake in one seamless process. Remember, staking dstkAAVE is necessary to earn GHO renting fees and other rewards. If you don't stake dstkAAVE, you'll only earn APR from the safety module's auto-compounding.
Once the deposit and stake is complete you’re all done!
To borrow discounted GHO, follow these two simple steps. Firstly, go to the "borrow" tab on the Dullahan app and select "new collateral" to create a borrow pod for managing your collateral on AAVE V3. Choose your desired collateral, approve and supply it to complete the first step.
Once your collateral is deposited, click on "borrow" to get your discounted GHO. The discount rate will be applied automatically when you enter the desired GHO amount. A small mint fee will also be included in the loan. Preview your new health factor, then complete the transaction to enjoy the best GHO price.
Please note that managing your position is the same as it is on AAVE. Keeping track of your health factor is crucial.
At its peak, Paladin's palstkAAVE pool successfully managed over $18M in assets, offering a convenient and effective way for AAVE stakeholders to passively accumulate their position. With Dullahan, we aim to continue and expand upon this. Security remains a top priority and we are proud to announce that Dullahan has undergone a thorough audit by Pessimistic, made possible through our partnership with AAVE grants.
Deposit and borrow today at https://dullahan.paladin.vote/