I totally agree with that.
I’m just wondering how often a strategy can be added/removed from a vault.
Let’s take your example. v2 DAi vault starts with cream, curve, uniswap, sushiswap. So I take a cover for those 4 protocols (so it means cost x4). I take the cover for 2 years. After 1 years we remove the cream and uniswap strategies and instead we add Maker.
How does it work ?
I have an idea. I’ don’t know if it’s possible and if it is, how easy it will be to do.
But can we imagine adding a button when you realize a deposit in the vault to be covered. So the vault will take a % of your yield and buy yCover with it. The issue I see is the following: if we don’t have fixed terms, I’m not sure we can buy yCover, so it will be impossible for the vault to buy yCover if people deposit and withdraw randomly.
One possibility is to add fixed term and locked deposit. For example, when you deposit you can choose between, flexible, 6 months ,1 year , 2 years. If you chose a fixed term, your deposit is locked and the vault will buy a cover for you (but we will need some fund for this at the beginning, as users will reimburse this cost overtime “1”). In exchange your APY will be lowered (to pay for the yCover).
Can it works ?
“1”:We can also imagine a curve for refund where the refund is not linear. For example, during the first 2-3 month a larger amount of APY is taken for the refund, so users will have less APY during 2-3 months, but it allows to refund “the vault” more quickly.
The only downside of this, is if you deposit funds when a strategy is on, you buy a cover for it, and if during your locked period, the strategy is removed, you paid a cover for nothing …
Again, I don’t know if it’s possible to do that. But with V2 we will also try to bring “mass adoption” so if we can have a very easy way to allow users to cover their funds… I think it can be very beneficial for the protocol.