CIP#16 - Add a new pool and gauge of yvault tokens (yVault yvDAI/yvUSDC/yvUSDT/yvTUSD/USDC)

Summary:

This aims to add a new pool of all the stable coin vaults from Yearn with the following tokens yvDAI/yvUSDC/yvUSDT/yvTUSD/USDC.

Abstract:

Would help users to easily jump between different vaults, add more liquidity and more fees for liquidity providers and governance participants.

Basketing for diversifying yield across different stablecoins to avoid needing to swap between coins to optimize interest yield. :snowflake:

Traders can easily swap between different vaults without paying withdrawal fees and can exit positions cheaply by swapping into vaults with sufficiently large token reserves and then withdrawing.

This will also help users enter and exit pools without paying the 0.5% Yearn withdrawal fee.

This pool has the same audited code base as the Y pool

Poll:

https://dao.curve.fi/vote/ownership/11

13 Likes

Wow yes pls. Also, that is yvUSDC right?

Amazing. I think its great.

What would it take to abstract all of this (through a synthethic?) to an tradable, liquid ERC-20? (btw is there liquidity somewhere for yTokens already?) Also, I suppose it would be cool to just auto-select and optimize for highest yield?

1 Like

So far pools have been based on stablecoins with the same peg. How will it work for vaults that are not pegged? Also, as @DarkGhosty asked, does this pool include the USDC vault and the USDC coin?

@DarkGhosty Yes this is USDC and yvUSDC. Curve pools can handle this.

2 Likes

I’m concerned about IL. As the ytokens accrue value at differing rates, won’t the assumption that they’re all ‘pegged’ to each other be violated? And arbitrageurs will basically get a chance to grab the extra accrued value for themselves rather than allowing it to accrue to LPs.

This probably happens to some extent with the existing ypool but the yields are low enough where the effect should not matter as much and the transaction fee covers the loss.

Curve can handle soft pegged assets so this won’t be an issue.

Why is yvUSD/yycrv not included in this pool? That is the one I was to swap into and out of the most.

3 Likes

@charlie_eth hey, i’m relatively new to curve so i probably don’t have the best understanding of the underlying mechanisms of the pools, but some points i’m wondering:

  1. Would this pool accrue crv rewards? Can it be boosted?
  2. For yVault depositors, you say the benefit is to be able to exit a vault without the withdrawal fee, would there be an indication on your UI which shows which vault isn’t charging a fee for the amount i’d be withdrawing, and giving possible slippage + fee + gas swapping into which one would be the most profitable or could you automate that?
  3. Lastly, given that withdrawal fees are by a big margin the main revenue stream for yearn/yfi stakers and this would seemingly be detrimental to them, how would you see this might affect the partnership yearn/curve?

Thx

  1. Yes
  2. It would just mean being able to swap yvDAI to USDC through a Curve thus circumventing the exit fee (this was cleared with Andre Cronje)
  3. Originally we didn’t want to put USDC to avoid this and Andre essentially said “if you don’t do it, somebody else will”.
3 Likes

Yes I’m for it. Awesome.

1 Like

I’m for! Would be a good addition to Curve