[Proposal] Composable Yield Vaults

• Create new vaults that provide flexibility with how the yield generated from current vaults is reinvested.
• For instance, the Curve stETH vault yields a 5.10% APY. Instead of having the yield directed back into the current vault strategy, provide the flexibility for the yield to be deposited into a different vault, DAI for example. Depositor would receive yvDAI.
• stETH > Harvest Yield > Convert to DAI > Deposit in Dai vault > Return yvDAI to depositor.
• Above example can also be reversed. DAI > yield > stETH vault

• With the current structure of vaults, the assets you deposit are the assets you earn.
• Offering the flexibility for yield to be returned in another form can draw in additional depositors and grow TVL.
• Composable yield allows for better portfolio construction and risk management.
• As the money lego ecosystem continues to develop, I believe a big unlock is the ability to redirect yield to different strategies. As vaults offered continued to grow, yield can be redirected for exposure without adjusting ones principle.

• Vault strategies are already in place.
• Allow for depositor to dollar cost average into a position.
• Allow for depositor to generate consistent stable income.
• Potentially appealing for treasury management
• Yearn TVL growth

• Potential to draw assets from already established yearn vaults. While this doesn’t grow TVL, it does indicate that these asset holders value composable yield.
• These vaults will likely have a higher gas impact (unsure)

Looking forward to feedback.

TG: @Hardy_Har_Har

-Not sure how to add a poll

1 Like

This topic was automatically closed 7 days after the last reply. New replies are no longer allowed.