[strategy] Capitalize on the stagnant wNXM supply that is sitting on the sidelines. This is a unique situation that lends itself to the main advantages that YFI vaults provide
YFI vaults will become the premier parking spot for all wNXM. Currently (10/28) there is a market cap of ~48M$ in wNXM that is idle. YFI could pool these funds in a gas efficient manner, un-wrap into NXM and then be exposed to a plethora of yield generating opportunities. Many holders of wNXM cannot unwrap and participate in the yield opportunities available and they are purely anticipating price appreciation of the asset. In the same way YFI traditionally leverages automation and gas efficiency to provide value to users, this goes one step further by enabling wNXM holders to gain access to unwrapped yields and benefits.
YFI is looking for innovative new vaults and strategies. The DeFi landscape is changing constantly and we have many very smart people here who are always innovating on the yield aggregation front. Personally I have bought wNXM for the long haul and will continue to do so, but was surprised with the lack of yield generating opportunities. If you KYC there is actually quite a lot of yield generating activities with in the mutual and outside of it. These opportunities appear unique in the sense that they dont require an ETH pairing and seem to be asymmetric when contrasted against traditional DeFi yield opportunities. The risk profile is different due to the nature of the product. If we could pool a bunch of this and then have the vault contract KYC’d it would provide a one of a kind opportunity for non-KYC people to earn KYC enabled yields in a gas and time efficient manner.
Start wNXM v2 vault.
Issue ywNXM pool token
Have the vault contract or YFI as a whole perform KYC and become a member of Nexus Mutual
Unwrap all wNXM into NXM
Stake the NXM in the Nexus Mutual pools (many ~30% apy pools there) or outside of the Nexus Mutual pools ( Keep network shield mining)
Sell the farmed tokens for more wNXM
Rinse and repeat