Make USD++ a Yield-Bearing basket of stable coins by migrating from smart pool to PieVaults.
Following my first tease on PieDAO Roadmap 2021 - Q1 I’d like to propose we move forward with the migration of USD++ to a PieVaults, effectively transforming it into a portfolio of yield-bearing stable coins.
USD++ is the perfect pie to start migrating from a Smart Pool to a PieVault as it’s currently holding little assets into it and therefore is the most natural candidate to start the migration process before moving to other pies.
The first step is to enable the migration of the pool to a PieVault by using Experinator which will atomically migrate the pool.
After migration, I suggest a rebalance to target equal weights of stable coin and the addiction of USDT and BUSD, for an allocation which would look like the following:
Once assets are ready and properly rebalance, I propose to add and progressively whitelist the following strategies for yield farm:
- Yearn yCRV Vault
- Idle Finance
- Yearn crvBUSD Vault
Here’s an on-spot check of APY rates of the proposed strategies and how do they compare to other options. The cells highlighted in yellow are the preferred selection for the asset.
Factoring those values, the pie would generate 18.95% APY according to spot interest values with decent diversification in terms of overall protocol risk.
The migration would enable a new beginning for the USD++ and lead towards more complex strategies with a bit of extra work, such as PIP 55 - USD++ Revision To Earn Yield On Curve. Additionally, puts together the groundwork for migrating other pies soon with limited risk.
- Bake it!
- I don’t like it.