Hey guys, I’m new to the community. I just want to clarify that I understand yUSD to equal yyDAI+yUSDC+yUSDT+yTUSD. I will use yUSD to represent yyDAI+yUSDC+yUSDT+yTUSD below.
The simplest strategies are the best strategies. I noticed that the yUSD markets on Uniswap aren’t very efficient. yUSD/USDT is the most liquid market on Uniswap:
24H Low/High = $1.09 / $1.22
All time Low/High = $0.931607 / $2.45
There’s a clear margin here.
I propose buying them up and burning them, whenever they hit a dollar or perhaps some fixed percent underneath what the true value of yUSD should be at the time (which can be calculated based on whats been deposited if I understand correctly.) I’m sure this can be optimized with better math but the general idea is that we can capitalize off of people’s laziness/for their convenience of dumping on Uniswap instead of going back to the vault
I hope this makes sense! I’m eager to learn so if I misunderstand some concept comment below!