As part of the newly introduced Product Refinement initiative we’d like to propose a health check of YPIE - Yearn Ecosystem Pie
YPIE was introduced back in December 2020 to provide exposure to the growing Yearn Finance Ecosystem, which was hotly anticipated back then given the powerful reputation gained by Yearn in the DeFi scene. The initial synergic strength of this ecosystem has been quite cooling off since then, perhaps due to multiple exploits which occurred to projects part of it (Cover, Cream), which may have somehow affected its reputation overtime and impacting this product’s performance.
As anticipated, the intention is to pragmatically put into perspective the cost/benefit of our products when assessing their performance and potential optimization.
We’ve been condensing in the health-check below some stats on YPIE
Market Fit: #Holders of the YPIE index are extremely limited (sub 300) and downtrending over the past 100 days, denoting an overall lack of interest in this product. Monthly trading volume is negligible ($7.8k) on the only pool available on Sushi. The YPIE oven baked for the last time on Sept 10th 2021, almost 5 months ago.
Revenue: Fees accrued both by PieDAO and by LP holders are negligible as well. On the other hand, YPIE holders yield approx 5% APY from the current strategies deployed.
Operational Costs: No Operational costs since no incentives, rebalancing or gas subsidization applied over the past months. At the same time PieDAO had to face costs to safeguard the underlying assets during the past Cream exploit suffered as of late October, with connected gas expenses incurred.
Liquidity Pools: Current YPIE/ETH pool on Sushi had less than $5k liquidity.
Performance: Very low TVL represents a tangible issue of YPIE, barely crossing the $120k mark. At the same time, Return has not been staggering, accounting at current rates to 1.08x since inception (2.34x @ATH).
Based on the above, it seems clear the lack of Market fit and declining interest in this product.
The proposed solution would be to discontinue YPIE from the PieDAO offering. This process could take place with no delay.
Should this proposal be approved, YPIE should be added to the legacy product page for deprecated PieDAO products. Current YPIE holders may either opt to keep their position and farm the YPIE intrinsic yield strategy, or exit the pie.
- PieDAO to cease the following activities for YPIE
- LP incentives and liquidity provisioning
- Listing within active PieDAO offerings
- The deprecated product will
- Be displayed on a specific page on the site (under construction)
- Remain being redeemable for its underlying assets
- Yes, do it
- Nope, keep as is