# Rehypothecation Collateral Adapter when you deposit USDC into this collateral adapter, it goes into compound, so the system is holding cUSDC on its balance sheet. the adapter then borrows USDC from compound up to some predetermined "leverage", which achieves the compound recycling thing to maximise yield the user can then borrow DAI up to the liquidation ratio say (110%) as normal ```sequence Note left of Alice: Balance Note left of Alice: 1000 USDC Alice->Maker CDP: Lock 1000 USDC Maker CDP->Compound: Deposit 1000 USDC Compound->Maker CDP: cUSDC Compound->Alice: Earns COMP Alice->Alice: Option to Sell COMP Maker CDP-> Alice: Borrow DAI Note over Alice: Repeat ``` ## yEarn Strategy ```sequence Note left of Alice: Balance Note left of Alice: 1 ETH Alice->Maker CDP: Lock ETH Maker CDP-> Alice: Mint DAI Note left of Alice: 200 DAI Alice-> yCurve Pool: Lock Dai  yCurve Pool-> iearn DAI: lock Dai iearn DAI-> yCurve Pool: mint yDai yCurve Pool-> Alice: Mint yCRV Note left of Alice: 195 yCRV Alice-> Yearn CRV Vault: lock yCRV Yearn CRV Vault-> Alice:Mint yyCRV Note left of Alice: 195 yyCRV Note left of Alice: time pass-interest accural Note left of Alice: 200 yyCRV Alice-> Yearn CRV Vault: burn yyCRV Yearn CRV Vault -> Alice: yCRV Note left of Alice: 200 yCRV Alice-> yCurve Pool: Burn yCRV yCurve Pool-> iearn DAI: Burn yDai iearn DAI-> yCurve Pool: Dai + accrued interest yCurve Pool -> Alice: Dai + swap fees + accrued interest Note left of Alice: 210 Dai Alice -> Maker CDP: Burn 200 Dai Maker CDP -> Alice: ETH Note left of Alice: 1 ETH + 10 DAI ```