Compound Interest Farming

Overview

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This project implements a Compound Interest Farming strategy using the Compound protocol. The script automates the process of depositing DAI into the cDAI market, claiming COMP rewards, and reinvesting those rewards back into the cDAI market to compound interest.

Features

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• Fetches user assets and interest rates from the Compound protocol.
• Approves token transfers for DAI and COMP.
• Deposits DAI into the cDAI market.
• Claims COMP rewards.
• Reinvests COMP rewards back into the cDAI market.
• Schedules reinvestment to run daily at midnight.

Prerequisites

• Node.js and npm installed on your machine.
• An Ethereum wallet with some DAI and COMP tokens.
• An Infura project ID for connecting to the Ethereum mainnet.

Installation

1. Clone the Repository:

   git clone https://github.com/yllvar/compound-interest-farming.git
   cd compound-interest-farming

2. Install Dependencies:

   npm install

3. Set Up Environment Variables:

   • Create a .env file in the root directory of the project.

   • Add the following environment variables to the .env file:

     INFURA_PROJECT_ID=your_infura_project_id
     ACCOUNT_ADDRESS=your_wallet_address
     PRIVATE_KEY=your_private_key
     

   • Replace your_infura_project_id, your_wallet_address, and your_private_key with your actual Infura project ID, wallet address, and private key.

4. Validate Private Key:

   • Ensure that the private key is 64 hexadecimal characters (32 bytes), optionally starting with 0x.

Usage

1. Run the Script:

   node index.js

2. Initial Setup:

   • The script will:
     • Fetch user assets and interest rates.
     • Approve token transfer for DAI.
     • Deposit 100 DAI into the cDAI market.
     • Claim COMP rewards.
     • Reinvest COMP rewards back into the cDAI market.

3. Scheduled Reinvestment:

   • The script schedules reinvestment to run daily at midnight. You can modify the schedule in the schedule.scheduleJob function in index.js.

Configuration

• Change Deposit Amount:

  • Modify the amountToDeposit variable in the index.js file to change the initial deposit amount.

  const amountToDeposit = web3.utils.toWei('100', 'ether'); // Example: 100 DAI

• Modify Reinvestment Schedule:

  • Modify the cron expression in the schedule.scheduleJob function to change the reinvestment schedule.

  schedule.scheduleJob('0 0 * * *', async () => { // Daily at midnight
    await reinvestInterest();
  });