So I think if we’re doing this as a Yearn product, it makes sense to target most of the high-liquidity and high-volume pairs that we consider legit.
- And of course, YFI/ETH
Then it gets a bit trickier. There’s some other good options for neighboring projects such as PICKLE/ETH and FARM/USDC. While I think it’s beneficial to work with other projects in the space, my only concern would be based on how the insurance works. Since these are still relatively new projects, price swings (and subsequent IL) could be large, so that might be something to consider.
Perhaps other big DeFi players would be good as well, and also have high volume:
Lastly, DPI/ETH has had good volume for the past week and seems to be a cool new instrument but I’m not sure if we would want to include it in the first round.
My other consideration is a basic lack of understanding on how this would work. Is it a zero-sum game, where more pairs offered means less benefit to the other pairs? Or is it purely additive? If it’s the latter, then I would probably suggest throwing in a few more pairs—I’m just not sure what kind of target range for number of pairs we’re shooting for.