PIP-47: USD++ Migration To PieVault & Rebalance

PIP
#1

Summary

Make USD++ a Yield-Bearing basket of stable coins by migrating from smart pool to PieVaults.

Background

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.

Specification

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:

Screenshot 2021-02-02 at 16.44.03

Yield Farming

Once assets are ready and properly rebalance, I propose to add and progressively whitelist the following strategies for yield farm:

  • Compound
  • Yearn yCRV Vault
  • Idle Finance
  • Aave
  • 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.

Screenshot 2021-02-02 at 16.49.56
Screenshot 2021-02-02 at 16.49.56763×308 51.2 KB

Factoring those values, the pie would generate 18.95% APY according to spot interest values with decent diversification in terms of overall protocol risk.

Screenshot 2021-02-02 at 16.56.20

Conclusion

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.

Baker Choice
  • Bake it!
  • I don’t like it.

0 voters

12 Likes
#2

Full support for this proposal!

This is a shining example of the value proposition of PieVaults and will be a benchmark for further products.

That’s a fantastic APY for a highly risk-minimised product.

I would also be keen to support DOUGH LP incentives for this product.

4 Likes
#3

I fully support this move. This is a very clear differentiator of PieDAO versus competitors. Giving the average person an easy access point to this type of asset is a big deal.

1 Like
#4

Would the farmed tokens be sold for DOUGH as per PIP19?

1 Like
#5

That was my idea, yes. Thanks for pointing out I forgot to mention.

1 Like
#6

I think this is an excellent product and it will be very hard for anyone else to better this Stablecoin offering

#7

@alexintosh will this Pie have streaming fees? If so, I like the idea of increasing the streaming fees on the PieVaults to be 1.00% versus the .70% on the traditional pies. Seems like there is more work and moving parts and the community should apply fees accordingly. This gives an enhanced mechanism to reward DOUGH holders to participate in the governance. Just some thoughts.

#8

@alexintosh I have few questions.

First I’m 100% in favour. We should definitely move it to a PieVault and start farming !

I don’t really understand the second part with the strategy allocation.
Let’s take an example 33.3% Yearn. How does it work ? it means that 33.3% of the pie will farm on Yearn ? So for example USDC and DAI will be used for Yearn ? Or can it be 5% of each stablecoin ?

Also why do you want to use Curve alone ? Using yVault is much better as you won’t have anything to do. Otherwise, how will the PieVault will deal with CRV, boost …

I don’t know if it is the topic for this, but lending in the Iron Bank could also be a good idea. (it also depends on the risk we want to add in this PieVault).
I guess you numbers for Curve pool are wrong. They are very low !!

So finally if this proposal is “only” to move to a PieVAult , 100% OK,
If it’s also to discuss allocation, we could maybe improve it, but not sure if it’s the right place here.

And maybe we can also find a better name !

#9

Personally, I’m an unhappy mStable holder but since it is the new hotness, thoughts on adding that stable coin to the Pie?

#10

Bake it!

1 Like
#11

I have Tether FUD: https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3

50% in Curve + Yearn

image
image717×419 18.6 KB

Remaining 50% as you see fit

#12

I suggested adding mUSD to the pie a few weeks ago in the Discord, and have not gotten any constructive response on it yet.

mUSD would work very well for this pie in my opinion, and it can be turned into imUSD, which is the interest bearing version of mUSD, which in turn can be staked in their vault, for additional MTA rewards, that can be either put into the treasury, or further boost MTA rewards, or simply sold for DOUGH.

Would love for this to get the attention it deserves, as it will grant further options for farming that are otherwise not possible, and perhaps enable other features with the underlying meta basket that makes up mUSD.

#13

I feel like everybody does to some extent, luckily is only a portion of the pie which basically caps the risk.

#14

I agree, definitely more parts moving and if the apy generated is consistently good even more than that would be reasonable.

#15

The 33% is the amount of protocol exposure. In the table I posted, it picture the scenario of having BUSD and TUSD farming respectively on yCRV and crvBUSD.

I did propose to use vaults in fact :slight_smile:

Definitely interesting, good to start with a limited set of strategies and add those along the way imo.

I do care the most about migrating to PieVaults yes, the allocation can probably be improved and there is another member reasoning about it as well. Feel free to propose your own.

Please, yes.

#16

Definitely interesting, I need to study that better and understand the risk model behind the interest.

1 Like
#17

haha i think i didn’t read the table properly ^^

So should we start another thread for that?

Let me think about it !

#18

I also don’t like Tether but I don’t see it going anywhere. At this point Tether is basically the Fed haha.

The only issue I have with mStable is the UI and that you need a lot of MTA to get the max boost of 3x. A part of me wishes I spent my mStable allocation on PieDAO products instead but as far as holding a stablecoin goes, it is not bad.

#19

Vote: PIP-47: Migrate USD++ to PieVaults

Scope

This proposal is ONLY related to migrating the implementation from Smart Pool to PieVaults. It does not include the rebalancing nor the whitelisting of strategies for the underlying tokens.

:ballot_box: Snapshot: https://snapshot.page/#/piedao/proposal/QmNhhkq8jY2TbXFY32WL8t3anXYC4MFhxDu9NhhesrhL7L
:abacus: Type: Signal Vote, no gas required.

2 Likes
#20

Awesome Alex, thanks a lot!

I dug around a bit, and I think you’ll find most of your answers in this document here.

If you want to know more as well, I definitely am quite interested in the project myself, so I’m sure I can help out if need be :grin:

@richandcreamy the bonus is actually 3x not 3%, not sure if you were aware, so just putting it out there!

Other than that, looking forward to seeing this vault migration make its way to mainnet!