Disclaimer: this proposal is only the initial draft for community discussion.
The yield earning capability of pie vaults has never really been fully capitalized on (DeFi++ currently is earning 1.5% yield). The narrative amongst DeFi users is “productive” assets. PieDAO is lightyears ahead of other index offerings in this space. We should press the advantage by creating an attractive, safe (by DeFi standards) and high yielding vault.
The AAVE Super Saver (AASS) would be an approx 10.8% APY yielding investment product with a healthy mix of stables and appreciative assets. The index would be composed of all available assets on AAVE on Polygon. A yield earning index token that abstracts away lending, swapping etc… and just provides the user with a token they can buy and comfortably know they can expect 10%+ yield for the coming months is a highly mass market friendly asset. This would also be a highly attractive option to create farming pairs on Quickswap. If we could get Quickswap rewards on board, then the farmer would be receiving 10% APY + Quickswap APY. Tasty!
PieDAO is currently being outmanoeuvred by other index products which have setup shop on Polygon and are enjoying the benefits of the monetary velocity that network has achieved.
All assets are lent, the assets earned from lending are automatically relent on regular intervals (hourly?). The wMATIC earned from lending would be swapped, divided into the assets evenly and relent.
Rebalance: Daily? Weekly?
Strategies: See “strategy”
- wMatic rewards will potentially expire April 2022, the yield from the index might roughly halve at that point, is this a risk worth taking?
- How much effort in development is involved in these interactions?
- Is there better concepts, like for example weighting better APY assets on AAVE with a higher weight?
- Is PieDAO interested in going in this direction of a highly branded product which is focused more on yield then a category thesis?