add new yVaults with Credit Delegation to maximize ROI and expand utilization of capital.
The new yVault proposed aREN, aMANA, awBTC, aETH, aKNC, aBAT, aENJ, aSNX with all Credit Delegation enabled with up to 50% LTV (loan-to-value ratio), which is same as yaLINK.
Currently yaLINK is the only vault with Credit Delegation turned on. Credit Delegation increases the yield of a yVault and new vaults increases the capital utilization by introducing new users into yearn from other communities by bringing them yield on their tokens.
Each deposit into Aave mints interest-bearing aTokens, such as aLINK. Upon depositing to Aave, a credit line is available for exercise. Most depositors are not exercising they credit lines and would be happy to delegate their credit line to others for additional yield. Currently yaLINK has high ROI partly due to credit delegation. Upon passing this proposal, above new yVaults would be added with Credit Delegation of 50% of the locked aToken value. This means that any stablecoin could be borrowed up to 50% of the locked yVault value from Aave and used for strategies to increase ROI.
For: Add new yVault proposed aREN, aMANA, awBTC, aETH, aKNC, aBAT, aENJ, aSNX with all Credit Delegation enabled with up to 50% LTV (loan-to-value ratio)
Against: Don’t add