YIP-39: Add Curve sBTC Pool LP-Tokens yVault

Contributors (discord):

Author:
@uhmpeps

Summary:

Capture up to $214b in AUM from BTC holders who want to passively grow their BTC holdings by using some voting power to increase sBTC pool CRV returns and create a Vault for sBTC Curve Pool LP-token holders who deposit renBTC / wBTC / sBTC in Curve Pool 6. This can generate significant goodwill from Bitcoin holders who may not be aware of other use cases for their holdings currently.


It’s the Curve sBTC pool which accepts renBTC / wBTC / sBTC which are all equally acceptable and gives the most potential rewards.

We only need to accept the LP-token which is a single token type given to depositors of any type of wrapped BTC.

Abstract:

Create a Grow Vault for [6] sBTC Curve Pool LP-token depositors which functions almost identically to the yCRV and yYFI vault. Harvest CRV, sell it for more LP-tokens or renBTC which is then re-deposited to create, distribute and compound LP-token growth.

Motivation:

First big mover advantage. There is room to generate significant goodwill from bitcoin holders ($214b in potential AUM) by using our voting power to kick % rewards increase toward the sBTC pool, and to create the first fully passive mechanism for BTC holders to increase their Bitcoin holdings. Right now only the most confident BTC holders are depositing and recycling / farming CRV. This can become a black hole for BTC deposits into Curve via renBTC and LP tokens into yVault for passive returns and governance fees.

Specification:

[1]

  • Add a table row under the Grow Vault product, for LP-token holders who deposited funds into the Curve sBTC Pool named appropriately (don’t know what the LP token is called atm)
  • When user deposits Curve sBTC LP-token, system stakes the LP-token to Curve DAO and farms CRV
  • Upon receipt and sale of CRV on market, system buys either more LP-token if liquidity/pools are available, or buys renBTC or sBTC
  • xBTC is then deposited back to the Curve sBTC pool, LP-tokens generated, shown in table for depositors as gains, and meanwhile LP-tokens are cycled back into Curve DAO to compound CRV generation

[2]

  • Use some voting power to increase CRV return generation for BTC depositors to 50-70% to make it highly compelling for BTC holders
  • Ensure the new yVault is communicated to the appropriate audiences as a viable alternative to holding a non functional pet rock with no other purpose currently.

Poll:

  • For YES! Add Vault for Curve Pool 6: sBTC Vault LP-token holders to Maximize AUM and YFI Governance Fees Because I Am Chad Doge And Love My Waifus
  • For Don’t add because I am a sad dogey weep weep

0 voters

References

  • https://twitter.com/cryptoyieldinfo/status/1294984708367949829?s=21 “It’s just going to take a few $BTC maxis to defect into $renBTC (which is equally trustless and limited), tempted by easy low risk 200% yield whilst keeping their precious $BTC. Then the whole edifice falls down and billions of dollars flows into defi.” Maybe not 200% but definitely a consistent 50-70% would be insanely attractive
  • https://gov.yearn.finance/t/guiding-principles/3159 @Arcturus outlines some further points regarding CRV/token mechanics to justify why we should have a BTC pool LP-token vault here . "tl;dr prevents adversarial hijacking, adds more AUM which has a concurrent feedback loop to YFI to achieve the number 1 goal which is to maximize AUM, among other things."
  • https://gov.yearn.finance/t/ybtc-why-not/725 “seamless integration of native BTC to the platform with renJS would open the floodgates for BTC hodlers into defi” and “With wBTC becoming increasingly popular and renBTC finally offering a trustless, decentralised, KYC-free option, I believe it is time to create yTokens and yVaults based on BTC.”

14 Likes

I agree that adding BTC could significantly increase AUM. Which forms of wrapped BTC will this support? For example, am I able to directly deposit renBTC and earn interest on it if that is my preferred method of wrapped BTC?

1 Like

Likely not in v1 release (v1 is just vault and making sure things work), however I have that in mind for the next YIP to propose.
1 step BTC > renBTC > deposit > LP token > stake

That would be great. I think enabling several forms of wrapped BTC (via direct deposit) would have the biggest increase on total AUM. That should allow BTC holders to choose their preferred form of wrapped BTC.

2 Likes

Not sure if you are able to edit your post but it should be titled “proposal” not YIP, a proposal doesn’t get a YIP number until is posted for on chain voting.

fixed the title thanks @vany365

2 Likes

yes, renBTC is best atm

1 Like

Yep, this is an awesome vault addition and an absolute no-brainer. The coding aspect should be incredibly similar to the strategy for yCRV, and we will again gain more governance power from this move. And to answer @mossypath above– this will include all three forms of tokenized BTC (renBTC, wBTC, sBTC) currently available in the curve.fi LP pool– you’ll just need to contribute there first in whichever form you prefer to generate the LP token to be placed in the vault here.

Great work!

6 Likes

Agreed, this is a brilliant idea and total no-brainer. Agree with starting with renBTC and then adding support for additional forms of tokenized BTC. Thanks!

2 Likes

That’s the great thing about making it a vault for sBTC Pool LP tokens - users can deposit any wrapped BTC to curve, they get ONE type of LP token they can deposit to YFI :slight_smile:

1 Like

This is a conflict of interest for yCRV Vault LPs

What do you suggest to resolve this perceived CoI?

What exactly do you consider to be an issue potentially?

There are a couple different goals here.

  • Increase CRV reward weighting across yCRV and yBTC pools
  • Increase CRV reward multiple across yCRV and yBTC pools

And that’s based only on currently available parameters.

There are also as-yet-unconsidered options playable through Curve DAO governance.

Agreed on adding a BTC vault but why sBTC? It should be between wBTC and renBTC for the first BTC vault.

2 Likes


It’s the Curve sBTC pool which accepts renBTC / wBTC / sBTC which are all equally acceptable and gives the most potential rewards.
We only need to accept the LP-token which is a single token type given to depositors of any type of wrapped BTC.

1 Like

Well correct me if I am wrong, but the gauge vote is currently (or will be) towards Y pool. This will change to 50/50 among Y and BTC pools. So both LPs will get half of the rewards which is not terribly bad but surely not in favor of current yVault LPs

1 Like

Moreover, could we please skip those buzzwords that affect the sentiment of newbies? Such as sad dogey weep weep, chad doge. We can keep these for telegram for sure but not in a community voting which should be more formal and not be seen as a meme.

4 Likes

yeah cause we should move from non-custodial solutions to custodial ones. /s

1 Like

We could make it proportional to how big the pools are?

2 Likes

That’s fair enough imo

1 Like

Not so sure I would say its a conflict of interest… more spreading the love around. Yes it could lower the yield for the yCRV vault slightly but if done judiciously it should be minor and by attracting tokenized BTC holders to yearn, increase the value of the fees paid to YFI holders and attract more capital and attention to the platform as a whole, which should feed back into yCRV vaults in other ways.

Also, just seeing the suggestions above for weighting or equal split between pools… this could be a nice workaround.

1 Like