Hello everybody. Due to the latest incident with USDN depeg and consequences of it for YLA we need to discuss what to do further.
Some background info:
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Team is aware of the incident and wants to discuss together with the DAO members what to do
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PowerPool products are built on top of third-party protocols and assets, and all of them carry risks:
YLA composition was initially designed to follow the choice of the market from pre-selected list of vaults. The algorithm of weighting Vaults in the basket was based on TVL allocated to each particular Vault.
In simple words - the more $$$ TVL is in Vault, the bigger share of the YLA basket it has.
TVL for products containing USDN, other Defi protocols:
—> Yearn Finance USDN Vault had around $65m TVL, Convex - around $180m TVL before depeg.
- Nobody knows if USDN will peg back or not but emotion-based decisions frequently lead to losses.
Let’s discuss what to do together, including possible compensation plans.