[PIP-48] DEFI+L Migration To PieVault

Summary

Make DEFI+L a Yield-Bearing basket by migrating from smart pool to PieVaults.

Background

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.

Yield Farming

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.

Conclusion

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

0 voters

10 Likes

Very keen to see this happen.

Are you proposing to form the PieVault and add Sushi at a later date, or do at the same time?

3 Likes

I’m proposing to proceed as follow:

  1. Migrate to PieVaults
  2. Deploy lending strategy for current tokens
  3. Follow up with a rebalancing proposal
  4. Add SUSHI + xSUSHI if 3 is successuful

The reason to follow this progreassion in mostly related to the fact that PIP-46 has no number attached to it and the ones in the previous discussion have to be computed fresh.

4 Likes

Would this enable BCP and DeFi ++ to generate yield as well?

2 Likes

Look forward to that sweet sweet yield.

1 Like

No gas fees to vote! I’m very happy about this :smiley:

1 Like

:v:

1 Like

I love this! Have been wondering if this would be proposed once I saw YPIE was yield bearing

1 Like

this would be great. I see from the PieVault blog post that the asset appreciation is reflected in the price of the PieVault - just curious - is there anyway to track the cumulative interest rate earned on these PieVaults?

also, are there fees that go back to PieDao on the interest earned here?

since DEFI+L is based on balancer now, what will happen to farming for the ETH/DEFI+L in the balancer smartpool when this transitions to the native PieVault?

will liquidity mining move over to uniswap?

1 Like

Seems like a no brainer. Very excited for the future of Pie Vaults

1 Like

Migration done :white_check_mark:

4 Likes