Hi Guys,
Love this project, very excited for it and very keen to see the audit come through shortly.
I am just wondering if someone wouldn't mind help clarify for me where the advance on the yield comes from? As I'm having a little bit of difficulty understanding it.
I understand that you deposit your DAI as collateral, and that goes off to earn a yield. But when you borrow alUSD against it, where does that alUSD come from? Is that simply a freshly minted token because you have your collateral locked?
And if that is the case, when you take that alUSD and swap for DAI, where is that DAI coming from?
Sorry if this is a complete n00b question. I've been around crypto for a while but DEFI has never been my strong point. Just trying to get a better understanding.
Thanks!