The short of it:
- BTC can yield some returns if treated correctly
- no oracles = no exploits
- DILL DAO involvement = increased incentives to vote and 2.5x your yield
- Recent success of e.g. BADGER shows that BTC wealth is looking for a place to farm
- the sLP Stable/ETH pairs will likely be discontinued
- yearn does not have a decent BTC strategy
- switching between curve pools via e.g. Furucombo with x-of-y from governance
Here’s my idea.
- It obviously disregards a lot of components that usually are shwon in yearn vault structures, but I didnt want to go overboard.
- It’s basically any number of Jars that are “hidden” and only accessible via a single WBTC-accepting frontend, much like the yearn single-coin stable vaults.
- pyBTC = pickle yearn BTC, just to be clear on what you already guessed.
The user sends WBTC to the pyBTC vault, which “zaps” into any of the underlying Curve BTC pools by allocating the WBTC to the curve pool with the highest APY.
When withdrawing, the pyBTC strategy determines curve the pool with the lowest APY and withdraws WBTC from there to pay out the user, thus maximizing yield for the remainder of the users.
Every 14 days, the community can vote to re-allocate chunks from one curve pool to another.
This is done mainly to avoid trx-fee cost overhead for automated rebalancing and secure against exploits if APYs / pegs go wild. It also serves to conserve engineering power and minimize audit costs.
Given enough traffic, the strategy should auto-balance between the different curve pools via deposits and withdrawals with medium lag.
A minimum / maximum percentage of allocation could be instated to always have at least two or three and at most five active curve pools under management. The APY-component also considers issuance of third-party incentive tokens such as BOR or PNT:
I’d like to propose the research of such a structure to deploy it as a yearn v2 vault taking advantage of their veCRV lockup and granting DILL lockup bonus.
- pyBTC Minter / Vault Frontend. This has to calculate the value of one pyBTC LP share and mint/redeem accordingly.
Old, reusable Components:
- The Curve Jars can be slightly adjusted copies of the renBTC Jar.
- The Curve Jars take advantage of the yearn veCRV lockup.
- K3PER / Harvester inegration: The Harvester needs to be adjusted to not only farm CRV but also some of the other incentive tokens. Should be doable.
- Yes, brined BTC are the most delicious!
- No, I don’t like BTC.
But first: COMMENT!