Make DEFI+L a Yield-Bearing basket by migrating from smart pool to PieVaults.
After the first successful migration, I’m suggesting moving migrations forward with DEFI+L to a Yield-Bearing Pie.
Benefits of the operation are:
- Generate Yield on underlying.
- Remove limit of 2% for adding tokens (facilitates PIP-46, Sushi on DEFI+L).
- More predictable source of collateral for lending markets (see AAVE Proposal).
- Avoids the selling-the-winner-dynamic.
- Avoid AMM-related risks.
Start low-risk with a lending-only strategy using the already battle-tested manager for YPIE by enabling: Compound, AAVE, Cream. Additionally, I suggest considering staking on AAVE (right after the initial migration) which currently yields 6.03% but has a 10 Days Cooldown period and a different risk profile compared to lending (See https://docs.aave.com/faq/migration-and-staking).
Factoring those values, the pie would generate 2.75% APY according to spot interest values.
The migration is a step towards making lending markets for Pies, enables greater flexibility on the rebalancing process, and have assets generate consistent yield at any time.
- Make it happen
- Do nothing