@crytptosonic · Oct 16, 2023, 14:25
For example, if USDC is deposited in the dForce vault, ACryptoS strategy will supply the dForce market, borrow, supply again, borrow again... looping many times up to an optimal ratio, for the best APY.
The supplying and borrowing uses only USDC in the same strategy, no other tokens are involved. So there is 0 liquidation risk.
The rewards collected by dForce are sold into USDC, compounded back into the USDC vault. So basically USDC is automatically increasing.
Here is a link to the source on ACryptoS Discord: