An overview of "The Drain" which harvests and distributes rewards on Dracula Protocol V2.
Each day Dracula Protocol performs a Drain that liquidates rewards earned using the staked LP tokens from victim platforms and swaps the underlying platforms' reward tokens for ETH.
Each Drain is funded by a portion of the underlying reward yields harvested from the victim pools.
The awarded funds are automatically invested into an interest-earning ETH strategy which accrues compounding yield until a user chooses to harvest their individual earnings.
All earnings collected through the Drain compound in ETH. Users can choose to harvest their earnings in ETH -or- DRC regardless of the pool. If a user opts to harvest their earnings in DRC their share of ETH is swapped for DRC on the open market at the time of the withdrawal.
Every 24 hours at approximately 12 UTC the Dracula Protocol executes a process known as The Drain. This process claims all earned rewards from the underlying platform (SUSHI, DODO, etc.) victim pools.
Once The Drain has completed all reward claims the process executes sale orders on all rewards exchanging the tokens for ETH. The ETH is invested in a RARI vault that generates additional value through compounding interest on the deposited ETH.
The Drain is executed by the Dracula Team and is funded by a portion of the underlying reward token yields from victim platforms.