Proposal: the yETH-YFI-BULL strategy

Not a fan. I’m long both YFI and ETH but I’m never going to deposit my YFI into anything that has IL. Great way to loose Exposure to the best of YFI and ETH imo.

A core reason we got the yETH passed was the promise to help Maker bring the DAI peg into check. We succeeded for a time. But failed to correctly gauge market volatility risk.

I think the existing yETH strategy was sound, but would amend it to maintain a 400% ratio instead of 200%, this puts the ratio safely below the 0.786 Fibonacci level in any ETH retracement AND maintained below that fib as automated rebalances are made during corrections… as for the DAI peg; we’ve seen how popular the strat is. Enough ETH will flow in to generate enough DAI eventually. It doesn’t all have to happen in a day.

Lastly on the above. I know another issue with the yETH strat relates to Curve and the inherent risks it represents. I am thus more in favour of splitting the DAI generated to be allocated to multiple locations: Curve, Balancer, AAVE, Compound… even split 4 ways, I’m sure the aggregated yield would be great.

As far as YFI goes;

I would propose we ADD YFI to Maker as collateral and repeat the above yETH strat or continue with the delegated lending approach through AAVE.

Keep it simple.
No AMMs. No IL risk. No missing out on the best YFI and ETH have to offer.

Edit;
By continue with delegated lending approach through AAVE I refer to development of that strategy. Currently YFI vault strat points to Cream which isn’t as favourable.

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