Add a vault that duplicates the strategy of the current curve sbtc vault, but instead invests in the renBTC/wBTC curve pool. This pool has drastically higher yields the last few weeks than the curve pool with sbtc included in it, which does not really make sense. We are taking on extra risk by investing in the pool for renBTC/wBTC/sBTC as it holds 3 different coins. This vault, which in theory would be very easily to implement considering it follows the same strategy as curve sBTC vault just in a different pool, would help convince many more BTC holders to become involved in the yearn space.
Abstract :
YIP would add a renBTC/wBTC vault that invests in the ren pool on curve and reinvests profits back in.
Motivation :
People are seeking the highest yields in the space while avoiding risk as much as possible. Creating a vault with higher yields on BTC and lower overall risk would be a major positive for all users with very little overall work required from the yearn team to get this going. There is over 200 billion in bitcoin sitting on the sidelines and everyday the number of btc added to the ethereum chain is increasing rapidly. There are now over 80,000 BTC locked on ethereum with no signs of slowing down.
Specification :
A vault would be added for the renBTC/wBTC curve pool, copying other curve vault strategies.
For :
Less Risk for investors by avoiding sBTC. Higher yields. More diversification for those looking to gain yield on BTC.
Against :
Already have a pool that includes wBTC and renBTC. Maybe the higher
pool yield does not last, though there is seemingly A LOT of curve voting to keep increasing the weight of CRV rewards to this pool recently.
The APY on these two pools will likely continue to change and flip flop back and forth every week as the gauge vote happens and money flows in and out of the two pools.
Perhaps we need a renBTC/wBTC vault that can instead move back and forth as appropriate? And also be able to pursue other strategies as they become available (e.g. the current renBTC/UMA liquidity mining, assuming the APY is considerably better)?
i think the yearn team has been a bit hesitant to roll out a new strategy on such short notice and for something with very temporary liquidity rewards? but i could be wrong
I think my biggest issue with this would be that once the gauge weights are applied (which is happening imminently), the sBTC pool will yield much more. If we also add the wBTC/renBTC pool, this would dilute our gauge weighting further, reducing yield on our sBTC pool for no reason other than the added risk of a third asset in the pool (sBTC).
Also, looking at the APY, it’s hardly different for the two pools.
The big boost in APY is going to come from gauge weighting/CRV– and this will make up almost all of the gains. Adding another pool to this gauge will only dilute the boost, so I’m strongly against this.
Unless you really, really hate sBTC, this proposal will only harm the yield on BTC in curve.
isnt the gauge weight vote that is about to be completed projecting the the ren pool will have an even higher payout? because that is what I am looking at right now
Would love to hear from @banteg about whether the current values shown on https://dao.curve.fi/gaugeweight include the weighting from the yearn veCRV. If they already do, then I think we should definitely move forward with a ren curve vault. However, if yearn’s veCRV hasn’t been applied, then it may be worth waiting to see how adding yearn’s votes would shift back the gauge.
Though renBTC was discussed and rejected a while back because Andre said it’s not ready. There’s nothing stopping a yBTC vault from switching back and forth between the 2 Curve BTC pools.
I think the previous strategy/vault was rejected because it wasn’t fully planned out, not necessarily because a renBTC vault was a bad idea. But yeah, just switching between the two Curve pools if one is significantly higher yield is also not a bad idea– and we would get a bonus by removing a ton of renBTC from the sBTC pool anyway.
Maybe that’s what the vote should be? Changing the vault to switch between whichever crvBTC pool is more profitable?
Curve pools have different yields, it’s in the best interest of vaults to use the most profitable pool
Having multiple pools separate liquidity, harms savings
Instead of having a sBTC/WBTC/renBTC LP vault, maybe make it a strategy and promote a “BTC” vault that can switch between the sBTC/…/… pool and WBTC/renBTC pool.
Need to decide which flavour of tokenized BTC the BTC vault will take
Memory of reading a renBTC vault triggered
Make note to mention that Andre said the strategy was “not ready”
Make note to mention we can still have a BTC vault that switches strategies instead of creating a new vault
Type up following post, perhaps too succinctly.
tl;dr Maybe rebrand the current vault and switch between strategies instead of creating a separate vault. But the strategies are not ready yet.
This is exactly what I was thinking as well. One BTC vault to rule them all
Would require the user to deposit renBTC, WBTC, or SBTC (and maybe eventually other flavors of BTC) instead of the Curve LP pool tokens, and then the vault could move to the best yielding Curve pool weekly (based on gauge weights), or even to other opportunities outside Curve if appropriate.
Ideally, the vault would also vote the gauge weights weekly with some goal in mind to maximize return for the coming week. I am guessing if we did this at scale, it might make sense to flip flop the two main vaults weekly, voting up the gauge for the lower liquidity pool, and then being the first mover to switch the vault’s liquidity to that higher gauge weight pool, and then vice-versa the next week. Would allow extra gains to be made over people that just leave their BTC in one pool on autopilot.
These are some big brain ideas right here. Maybe we (Ryan P, Beepidibop, and need3lives) propose the single btc vault strategy and get credit as the strategy creators and split the strategy fee among us!???
