Summary
Enable yvyYB tokens to be used composably as a yield bearing asset (like wstETH) in liquidity pools, lending/borrowing/leverage markets and other DeFi protocols.
This can be accomplished by deploying Yearn DAO yvyYB PoL (or incentivizing yvyYB liquidity) and creating a yvyYB permissionless llamalend market.
Author
Astral Protocol: Increasing liquidity provider returns through layered yield strategies, liquidity pools and yield bearing vault tokens.
Background
asdCRV (Aladdin Vault staked sdCRV) is an excellent example of how deploying vault token liquidity and an Illamalend market can greatly increase vault TVL through enabling vault token DeFI composability and leverage/borrowing capabilities.
Motivation
Increase yvyYB TVL and utility by enabling users and other Protocols to leverage yvyYB, borrow against yvyYB, and to deploy yvyYB into liquidity pools including PoL.
Specification
Option 1:
Deploy Yearn Treasury PoL on Curve, composed of 33% yvyYB, 33% crvUSD, and 33% YFI. Configure dynamic swap fees between 0.1% - 1%. Deploy 100K TVL total.
Option 2:
Incentivize yvyYB/crvUSD liquidity on Curve using CRV bribes. Set dynamic swap fees to 0.01% - 0.05%.
Option 3:
Use a combination of Yearn PoL and incentives to bootstrap yvyYB liquidity. In this case deploy deploy a pool composed of yvyYB/crvUSD with 0.05% - 0.5% dynamic swap fee range.
After yvyYB liquidity is deployed, then create a permissionless Illamalend market for yvyYB tokens and seed fund this market with 20K+ crvUSD.
For:
Increase yvyYB TVL, adoption and usage.
Against:
Not worth investing Yearn PoL or paying for incentives.
Voting options:
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No
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Yes, option 1
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Yes, option 2
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Yes, option 3