Allocate 150k CVP Boost budget to bootstrapping YLA/USDC Sushiswap pair based on 0.025 CVP min / 0.50 CVP max stake for 1Sushi LP token = 1YLA + 1 USDC
Guys, I will be brief here. It seems that the launch of a brand new product (YLA = Yearn Lazy APE) has to be supported by the CVP Boost program. As a result of Proposal 22 approval, we have a 150k CVP Boost budget that can be used for bootstrapping the launch of our products.
YLA is not a generic index, it is a complex financial product aimed at diversifying yield from Yearn
v1 stablecoins Vaults. It allows getting more from funds that are already in Vaults. The Total Addressable Market for this product is ~$200M. It is $200m that generates 15-25% APY and it is comfortable for them (taking into account low risks of volatility).
If YLA will offer them +20% APY or more it will be a huge incentive to deposit Vault LP tokens into YLA. True competitive advantage.
So, I propose to use the already approved 150k CVP boost on YLA in order to bootstrap this product. I think that since (1) this already was approved by the community (2) we don’t have any other products to apply this boost we can launch it even tomorrow, get $1m TVL in YLA, open single-side liquidity provision, and finally boost the product.
So, we need to create YLA-USDC liquidity pair at Sushi and enable CVP boost for this pair based on numbers presented above (150k CVP total reward program, from 0.025 to 0.50 CVP per LP token - 1 YLA + 1 USDC)
I want to point out that this program should be temporary since I prefer the Curve YLA-USDC pair to be the main source of YLA secondary market liquidity in the future. As I know, the team discusses it.