Proposal: Yearn yTokens Index

Summary

Launch an index in the PowerPool ecosystem consisting of Yearn vault tokens:

  1. curve.fi/Compound LP
  2. curve.fi/3pool LP
  3. curve.fi/mUSD LP
  4. curve.fi/GUSD LP
  5. curve.fi/y LP
  6. curve.fi/busd LP

Instead of using equal weights – 16.66% – use adaptive weights proportional to vaults TVL [1].

The index serves 2 purposes:

  • smothen APY generated by vaults;
  • create liquidity sink for yTokens and effectively be the largest exchange pool.

Name and token symbol are up-to discussion.

Note: I propose to hold off with any CVP liquidity mining programs and reconsider this after index launch.

Motivation

Instead of switching between different vaults and paying withdrawal fee users will have access to more stable APY and a way to switch between pools.

Specification

Launch an index in the PowerPool ecosystem consisting of Yearn vault tokens:

  1. curve.fi/Compound LP
  2. curve.fi/3pool LP
  3. curve.fi/mUSD LP
  4. curve.fi/GUSD LP
  5. curve.fi/y LP
  6. curve.fi/busd LP

with name and token symbol defined later. Weights of the underlying tokens will be proportional to vaults TVL. TVL can be accesed by calling balance function on each of the tokens.

Note: Token weights and token set can be changed in the future via community proposals.

Reference

[1] TVL: https://feel-the-yearn.app/vaults

7 Likes

Fully support this proposal. Volume on this pool would be quite good and set a good base for Yearn V2 vaults to be included/updated in the future.

This is very good use case for swapping Yearn Vault tokens and saving gas and fees. I would have used this so many times in the past.

2 Likes

Sounds good! Any reason why the BTC pool wasn’t included?

1 Like

Looks great! Fully support this proposal. One question I have is if Yearn adds more stablecoin vaults from Curve, is this index going to add those in the future or intention is to focus on these 6 vaults tokens?

Also think TVL weighting makes a lot of sense.

One side note is maybe PP should move to Sushiswap from Uniswap v2 for ‘Trade’ function as part of building into Yearn Ecosystem.

1 Like

Maybe the intention is to stay with stablecoin vaults. It might make more sense to do another index focusing on BTC vaults?

4 Likes

Sounds great. And I personally like the idea of withdrawal fees. Sounds like a very good use case for general users, which might in turn attract more users resulting in desirable growth.

Great idea! Seems that it is the “all-in-one” product:

  1. Automated portfolio of cashflow-generating assets
  2. Single point to entry/exit Vaults
  3. Liquidity pool and basically one major trading pair for all yVaults at once
  4. Benefiting both Yearn community (useful product, solving users’ pain associated with swapping yVaults and diversifying income) and CVP token holders (entry/exit/swap fees going to CVP treasury).
3 Likes

Thank you for proposal.
FOR this prop.

Simple and cool. Will personally hold it for.

This is a really great idea for the whole PP protocol.

Awesome marketing
Increasing TVL by alot i assume
Fees for the treasury

So lets vote for that and implement ASAP!

FOR this, very elegant solution as @vasilysumanov mentioned.

Please advise what pools you would suggest to set up with [yVaults index]?

Lets consider adding CVP boost program for those who invest in yVaults index+CVP:

  1. same mechanics as with ASSY
  2. But CVP rewards are <= CVP purchased to be eligible for the CVP rewards

I believe this may work because by definition the [yVaults index] will have relatively conservative returns, so adding +1-2-3% APY would make difference motivating the investors to buy yVault and participate in the boost program

2 Likes

Names
yPOOL, YCP, YCuP, Yearn Power

2 Likes

Need to double check on numbers for other pairs but yUSD/ETH definitely has better liquidity on SushiSwap.

Uni
Sushi

1 Like

Some more ideas: yStables Index, Yearn Stablecoin Vault Index

What do you propose in regards to supporting the V2 Vaults? Would that be a separate index from the V1 vaults?

1 Like

LP tokens from OP are here to stay. Up to the people what they will choose when v2 is out:

  1. Create new index with yTokens that are not in the list.
  2. Update current index and replace some of the tokens, e.g. with those with better yield.

I see both options as viable but leaning towards first one.

3 Likes

Agreed, Option #1 is much cleaner.

1 Like

Thanks!
I am for this proposal.

https://snowswap.org/iearn/

Swap between yDAI, yUSDC, yUSDT, yTUSD and yUSD, ybCRV respectively. Should this rather be a cooperation?

This is something I would support without question… In fact, I registered simply for this proposal. (but I do have PIPT holdings and earned CVP)

I like they way Milky is thinking.

This type of feature is much sought after.

I Suggested the names

YCUS - Yearn Curve USdollars
YCUI - Yearn Curve Usd Index
YBrr - this is a joke.

Ynot2yEARN
Damn I love puns.
For this proposal. More different products in PowerPool - more TVL - more Apy - more interest - more puns (kidding)