This was recently posted by the ren and uma teams.
Seems like they are teaming up to incentivise the launch of their uUSD yield dollar
A quick summary from the medium article
- Wrap your BTC into renBTC so that it is usable on the Ethereum blockchain. To mint renBTC from native Bitcoin, go to RenBridge. Or, you can purchase renBTC on an exchange.
- Use renBTC to mint uUSD tokens on the UMA protocol. Use http://tools.umaproject.org.
- Deposit uUSD and USDC into the Balancer pool to earn BAL, REN, and UMA tokens
Process to Leverage
Follow steps above, then use uUSD to purchase USDC in the balancer pool.
You can then swap your USDC for more renBTC, which will increase your exposure to the underlying asset of Bitcoin.
The only downside side I can see is that it uses renBTC and a renBTC vault was proposed earlier and had negative feedback so I’m just posting this here to see what people think before I think about writing a proposal to farm it.
So, it seems like this vault would best be served accepting renBTC deposits, correct?
- So, user deposits renBTC.
- Vault deposits renBTC on UMA, mints uUSD, keeps at healthy collateralization ratio
- Vault swaps 1/2 of uUSD for USDC in Balancer pool
- Vault mints Balancer LP token
- Vault harvests and swaps UMA, BAL, and REN tokens for renBTC and starts over at 2
I suppose my main concern would be if there is any special approval needed for yearn to interact with UMA? But otherwise a great way to increase exposure to BTC if desired.
Do we know if it can beat the average 120% boosted yield across the two btc Curve pools?
I guess iearnfinance doesn’t have enough $CRV to boost both those pools 2.5x on the present BTC vault?
Not sure, but you would have to also figure out if the yield plus the $ from selling the uma, bal and ren all combined were greater than the yield from the curve pool.
Bit of an unknown currently since the ren/uma/bal pool hasnt begun
I just thought it was a given that we would be creating and iVault for those opportunities