[PIP-71] YPIE Health-Check

[gabo]

Summary

As part of the newly introduced Product Refinement initiative we’d like to propose a health check of YPIE - Yearn Ecosystem Pie

PieDAO

Background

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.

Specification

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.

Proposal

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.

Decommissioning Process

• PieDAO to cease the following activities for YPIE
  • Rebalancing
  • LP incentives and liquidity provisioning
  • Marketing
  • 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

Let’s feel the pulse of this proposal though a poll

Should YPIE be decommissioned?

• Yes, do it
• Nope, keep as is

[oilreg]

for me this is not a - yes or no - question
overall i like the idea of having a yield producing pie … it just was very unclear to me how much yield can be expected on YPIE, also anything below 10+% is not anything i would put my money in the first place… cause in that case i am better off doing it myself…
… with the current composition we are prolly better off to discontinue … thou i want to emphasize … something like YPIE … which just works better would be a highly sought after project imho

[haredog]

Unfortunately, I am among those who still own some YPIE. I had high expectations for it and am disappointed with its performance. I agree, it should be discontinued. The interest and returns are not worth the trouble.

Wondering what the gas costs will be for redeeming the underlying assets? Probably going to be high. Will the DAO consider absorbing some of this cost?

[gabo]

Hey there, I see you point. As pointed out here I think a viable solution could be the following:

YPIE Social Exit

Why? Liquidity is very thin and offering an exit to +200 holders it’s fair.

1. PieDAO to share a multisig address for certain period of time (~ 1 month), where all YPIE holders could send in their YPIE
2. PieDAO to redeem the liquidity collected and swap for ETH
3. YPIE holders to received back an equivalent $value in ETH, after deducting a small 2% fee as partial compensation for the gas cost incurred.

[Mark_sr]

Will there be a minimum for return. I have some YPIE dust in my wallet. Thanks.

[haredog]

@gabo that sounds like a fair proposition to me.

[gabo]

No minimum is envisioned. Of course it should justify the gas cost to send that to the multisig…

On PieDAO end it won’t make much difference since all YPIE received will be redeemed as a whole, and ETH dispersed back in bulk to each wallet.

Hope this clarifies.

[gabo]

A snapshot vote is now open Snapshot

[Adrian.A]

As part of the Product Refinement Initiative , we’d like to announce the schedule towards the YPIE product decommissioning as per the passed [PIP-71] .

Schedule
Decommissioning: Effective Now
Social Exit: Starts: February 24th / Ends: March 27th

Decommissioning
→ PieDAO has cease the following activities for YPIE: Re-balancing, LP incentives and liquidity provisioning, Marketing & Listing within active PieDAO offerings.
→ The deprecated product and all it’s site functions will remain being available at legacy.piedao.org. Holders can use that site to redeem their underlying assets or continue depositing/withdrawing funds from the Oven.

Social Exit

• YPIE holders can opt to send their tokens to the multi-sig address for PieDAO to collect, redeem, swap and send back an equivalent $value in ETH. A 2% fee will be applied as partial compensation for the gas cost incurred.
• Funds will be collected starting February 24th until March 27th . ETH will be distributed on March 28th.
• YPIE $value will be defined at March 26th end of day, as the 3 days average of the YPIE NAV (Net Asset Value)
• Multi-sig address: 0x6458A23B020f489651f2777Bd849ddEd34DfCcd2

TL;DR

• YPIE maintenance is effectively terminated
• A social burning strategy is running and will be over executed in 30 days
• To withdraw your funds from the YPIE oven go to legacy.piedao.org

Resources

• Announcement: Discord
• Forum Post: [PIP-71] YPIE Health-Check - #8 by gabo
• Snapshot vote: Snapshot
• Product Refinement Initiative: Products Refinement Initiative

[gabo]

Hey all! You can find here the applicable YPIE/ETH rate, valid for all YPIE received as of March 27th 2022 (details on this spreadsheet ).

1 YPIE = 0.000304 ETH

Each address having sent YPIE to the DAO multi-sig will receive an equivalent amount of ETH calculated as per rate above, deducing a 2% fee as partial compensation for gas cost incurred by the DAO.

Stay Crusty!

[Adrian.A]

@ Members and $YPIE holders

The $YPIE social exit window has been closed.
ETH has been distributed to those who opted-in for this option by sending their YPIE tokens to the multi-sig address.

Remember that the window is closed — Do not sent your YPIE tokens to the multi-sig address

Summary of the Operation

A total of 27 addressed opted in for the social exit
A total of 27,980.3047 $YPIE has been swapped, ending up with 8.340814097 $ETH
The rate determined for the conversion is 1 YPIE = 0.000304 ETH