Cheap buy ups on ( yyDAI+yUSDC+yUSDT+yTUSD / any )

Proposals Other Products (Labs)
4

I do agree this market is a good spot to test this idea since the opportunity is evident by the price difference.

OTC trade doesn’t affect gas subs since the buyer still has to pay for gas to cash out. But in this strategy, since yUSD is burned by the protocol, the protocol pays for the cash out gas.

The “hard to implement” part is just me being lazy and glossing over how to determine what portion of the vault should be used to execute this arbitrage at any given time, and the method of executing this arbitrage.

Now that I think about it some more, gas sub will be paid for by portion of profit and dictated by market price since this YIP seems to be moving along nicely. Profit is easily calculated (New yCRV - Old yCRV). The only hiccup now is how to get from yCRV to yUSD on uniswap. Do we:

Option 1:

  1. Burn yCRV for USDT, DAI, etc.
  2. Convert the other stablecoins to USDT
  3. Uniswap to yUSD

or

Option 2:

  1. Let Uniswap figure out the best path straight from yCRV to yUSD

There’s more methods too, these two aren’t the only options, just throwing some out there as examples.