The yETH v2.0
- open community CDP by providing ETH to Maker and Minting DAI:
- Provide DAI to 4 pools:
*25% of DAI minted should be provided to Curve yPool as it is right now (Trading fees + CRV harvested)
*25% to a stable pool USDC/DAI with 0.04% swap fees (Trading fees + BAL harvested)
*25% to a stable pool TUSD/DAI with 0.04% (Trading fees + BAL harvested)
*25% to mint mUSD and Save it in their pool.
- Profit assessments should be once a week.
- CDP ratio starts at 300% and can be lowered after.
- potential emergency protocols to repay the debt if CDP ration go under 200%
Risk Mitigation algorithm: .
First: DAI interest accrued should be paid once a week (it’s at 0% right now but it can change in the future)
Profits buys back ETH and Repeat for the next week.
If Profits<DAI interest accrued over the week: Minting new DAI is paused.
If Profits<DAI interest accrued for the second week straight: Start repaying some of DAI outstanding and returning to 300% CDP ratio:.
We start with a 300% CDP ratio as a ‘test in prod’
Liquidator triggered: when at any time CDP ratio go under 200% -> start repaying DAI debt.
limited exposure to USDT because of the biggest rug pull of rug pulls risk.
for those worrying about BAL price throughout the week, we can hedge its price by buying BAL puts on opyn for the week, although I don’t think we will need that for now.
the 4 pools allocations can be optimized further based on transaction volume and rewards harvested, this can happen on a weekly basis.
Potential of adding/removing/reallocating to new pools in the future.