Dividend Strategy Vaults

What about a yETH or yBTC strategy than instead of buying more of the main asset, pays the holder yDAI (or some other stable coin)?

This would be very popular with crypto whales that don’t want to sell their holdings, but need cash for day to day. Similar thing happens with high dividend stocks / etfs. BlockFi kind of offers this.
This would also be beneficial for YFI as it increases the usage / adoption of yDAI.

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I think you can see depositing yfi in the gov pool as a way to get dividends over the gains from the vaults, but would be interesting to see if you can have an option to get paid in stable vs same token in the vaults, although this will potentially add more tx fee’s overal to the vaults)


But this could be managed, if you prefer to get paid in Xstable token, your exit % could be higher (from 3% to 5% or something like that)…

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Agree 100%, that is something I was thinking for myself. But:
a) even for sophisticated people, its hard to know your actual yield
b) with current gas prices its expensive to withdraw % of the contract. Cheaper if this is pooled (yearn is buying eth/btc with the farmed tokens anyways, could buy stablecoins).

And again, I think that more people with yUSD makes the case stronger for it to win as the best stable coin.


A Usd dividend on an eth deposit can certainly have an appeal for non crypto users and perhaps boost eth price in the process

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I think this is more of an idea for a whole subclass of vaults, correct? Basically take the existing vaults and modify the strategy such that instead of swapping CRV or whatever for the underlying asset, it’s swapped for yUSD. This is effectively the inverse of the idea proposed here: Proposal: yCRV-ETH exposure vault, which is essentially a yCRV vault whose earnings are swapped into ETH instead of more yUSD.

I think this isn’t a bad idea, and would help eventually build out the ecosystem for a diverse variety of preferences. However, I would say these types of “alternative” vaults are probably a little lower priority right now.


Indeed my point being that a person not familiar with blockchain could be more incited to buy eth as a long term investment managing the volatility if they see a usd return tied to the investment

My only argument with that idea would be that I’m not sure we want users who are not familiar with blockchain to be using yearn.

I know people act like Andre is a god and yearn is 100% safe, but he says that it’s beta software for a reason. Things could break, and if someone doesn’t even really know what crypto or blockchain is I’m not really sure they can be safely using yearn. I’d be worried about these people sending crypto to smart contracts instead of depositing it, buying the wrong tokens, etc.

This shit all seems super basic to us but it’s really not, especially to someone who has never done it before.

Good point here on do we want users that are not familiar with blockchain using yearn (?). Made me think, I don’t actually know what is our mission with YFI.

As a token holder I want YFI to have the largest possible AUM locked in the strategies / vaults. I think something like this would be extremely popular. Just look at how well BlockFi is doing. I imagine something like this being picked up on several media sources.

Good point raised, something I need to think deeper about myself.

I think Crypto Whales, especially BTC whales do not need anyone’s cash. The ethical whales are off creating and the institutional whales probably do not want a strong defi environment. The greedy ones will empty you coffers and you will thank them. I have been around Crypto since 2011 and the amount of theives I have met is quite disturbing. That said, far more are righteous, smart , and honest. Far better than the wall street and banking criminals.