Yearn Millennium Prize - Discussion Thread

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If you have an idea or strategy that you think could, if put into production, qualify for our Millennium prize as outlined in our tweet feel free to post or talk about it here. Any posts elsewhere will be delete. Also note that you will need to actually put the strategy into production and earn the APY to get the prize. You can see more details about the process of a strategy going from creation to prod then to > 100m tvl in FlashFish’s tweet below.

yearn

flashfish

[Budgetboy]

Here is my Proposal for the yearn Millennium Prize that could possibly get a return of 12% on $1B using the MIM-3CRV pool on curve and convex finance.

The reason for choosing the MIM-3CRV pool is that it already has a TVL of 2.58 billion and $1B would cause a 39% drop in rewards if you do napkin math. The second reason for choosing this pool is that the abracadabra team is knee deep in the curve bribe war game and will continuously keep bribing to ensure a good amount of CRV inflation comes to its gauge to increase utility for MIM.

Here is a diagrammatic representation of the strategy after which I will share the steps as well as simulation for reference:

Steps

1. Deposit $1B in MIM-3CRV pool on Curve Finance
2. Deposit MIM-CRV LP in Convex to boost rewards
   2.a. The reward breakup after diluting with the extra $1B post napkin math should be something like this: 3.57% CRV, 5.24% CVX, 5.09% SPELL, 0.62% Fees
3. Convert the CRV to cvxCRV and votelock the CVX to vlCVX to earn a further 11.67% (after dilution) in CRV, 17.23% (after dilution) in CVX, 7.86%in 3CRV and 5.6% in cvxCRV.
4. Sell SPELL for MIM and Re-invest the 3CRV back into the MIM-3CRV pool.
5. From the rewards earned in step 3, stake the cvxCRV and CVX and convert CRV into more cvxCRV.
6. Repeat the process periodically in a gas efficient manner.

Alternatively

1. Instead of vote locking CVX into vlCVX it can be sold instead since yearn already has significant influence in the Curve - Convex universe to get the gauge inflation into the pools in which they are farming.

Disclaimers

1. I have not taken the cost of gas and transaction fees into consideration in the simulation
2. The impact on rewards caused by $1B into the MIM-3CRV pool was done by simple napkin math with the logic being a ~40% increase in supply creates a ~40% reduction in rewards for everyone participating.
3. Not sure if 12% should be achieved before Yearn’s performance fees or after.
4. I am not a dev and hence wont be able to write the smart contracts for this strategy.

Simulation
Simulation of Curve<>Convex Strategy

Pros
Safe Farms (Curve and Convex)

Cons
There is a slight dependency in the price performance of $SPELL

[syncubate]

Thanks for posting this discussion thread. I wrote up a detailed overview of my idea for a strategy and shared it on my blog a few days ago; the blog post is entitled Millennium Prize Strategy via Liquity Protocol.

Specifically, I focused on the prize challenge of 12% APY on $1B for a month or longer. I acknowledge this would be an inherently challenging feat to accomplish via DeFi in both a safe and recurring manner, considering the amount at stake. Even so, I did my best to articulate how it may potentially be achieved via the shared approach. Thanks for the consideration and I look forward to any feedback.