yETH <=> ETH Delegated Vault

Hey there guys, I have been wondering if there was any plan on doing/work already being done so people can get yield with their ETH.

I thought maybe a delegated vault that gives you yETH, creates a CDP, manage its collateral and uses the yCRV vault in order to get yield.

I’ve tried searching through the forum, and found nothing so far, only this tweet of Andre

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I might consider a strategy that instead of minting Dai on MKR, deposits it into compound and simply borrows the Dai instead, for a net return in COMP. Either way, ETH obviously has the most massive liquidity of anything out there, almost seems crazy there isn’t already a vault for it.

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I think that the reason is that managing the debt add a level of complexity.
There is no vault right now that need to manage debt. Doing so, we will need to have price feed and make sure the ratio stay healthy.

Ok. Maybe I misunderstood, but doesnt the link’s delegated vault manage the aave’s debt ? It would be the same, but managing mkr debt.

I’m sure if a proposal for this is made and passed it will be added.

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I think the shitty thing of making this a delegated vault, it would be that right now maker dao’s fees are lower than borrowing DAI in aave, but if that changes, you would not have the strategy with the max yield.

This is an insanely amazing idea.

yETH > Compound, borrow [StableCoin] > deposit in Curve, get yCRV > stake in yCRV vault, get yyCRV.

Earn Comp, Earn CRV
Liquidate comp and crv, buy ETH,
Repeat.

I’ve goosebumps!!

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This is very cool. So the yETH vault would work as a layer on top of the yCRV Vault, adding some extra logic. It would deposit ETH and borrow Dai/USDC/etc with whichever platform is cheapest, while making sure to stay above the collateralization ratio. Then it would manage rolling/unrolling the stablecoin into the yyCRV vault. It will be interesting to see how it will handle having two different balances on this vault, ETH and yCRV. Or if the vault will just buy more ETH with the earned yCRV.

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I’d actually just accumulate and re-buy ETH, lowering whatever liq. price. and maybe leveraging up if liq. price its down certain threshold.

Most of the comments are talking about borrowing DAI/USDC/etc, why not just create a CDP ? Am I missing something ?

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The savings rate on a CDP is 0% for now, but likely will not be in the future. You could also take into account additional token dispersement, like with COMP, and sell that to make up for potential borrowing rate.

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I second this method except borrow from ALL avenues using an optimized amount of usdc/usdt/dai, considering the size of a potential ETH vault, the implications of dai supply and liquidity would be quite the shitshow if it was only using COMP. (referencing the biggest limiting factor using comp is Dai’s kink in interest rate)


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I’m generally not really understanding what’s going on. Can someone please put me through?

I think that it will use a CDP instead of borrow from compound because the yvault will have access to the ETH/USD maker Oracle so the ETH will be safe from liquidation.

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I think it would be worth thinking about how to avoid triggering a CGT event here. For most parts of the world swapping ETH => yETH etc could possibly be triggering a capital gains event. Is there a way to just deposit the ETH and you can just see your ETH balance go up over time. Or better still your ETH balance goes up only when you withdraw. This would mean you only need to worry about the interest being income tax, and not worry about triggering CGT events when depositing ETH.

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I posted about a similar issue a few days ago and got no response. Would be interested in ideas.

https://gov.yearn.finance/t/yield-opportunities-for-those-subject-to-u-s-tax-law/

This would be interesting to explore

I’m confused. I read on the news that this vault has launched today but I can’t see it on yearn.finance.

Has it really launched? If so where is it?

Cheers

No one here knows anything about the launch? Then where did newsbtc get the info the vault was launched today?

This is confusing…

It has not launched. @banteg has been making some whispers on twitter about it so it seems likely that it launches today but that’s not for sure

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Thanks @dudesahn That explains it