Summary:
Deposit 5% of all Curve DAO Revenue into permanent, high-yielding (30%+ APY) Curve DAO Protocol-owned-Liquidity.
Author:
Astral Protocol: Increasing liquidity provider returns through layered yield strategies, liquidity pools and yield bearing vault tokens.
Abstract:
Deposit 5% of weekly CRV DAO Revenue into a Curve DAO Treasury owned volatile tri-pool composed of scrvUSD, asdCV, and yvyYB tokens with 1%-3% adaptive swap fee rate.
As of February 9th, the total yield generated by the above pool position would equal approximately 150% APY, which comes from four sources of revenue.
- yvyYB - Yearn Vault held liquid yYB tokens. 330% APY / 3 = 110% APY
- asdCRV - Aladdin Vault held liquid stakeDAO veCRV tokens. 48% APY / 3 = 16% APY.
- scrvUSD - Staked crvUSD. 12% APY / 3 = 4% APY.
- Tri-Pool LP Swap Fees. Estimated around 12% APY
While current yield generated by yvyYB is unsustainably high, the long-term APR of the above Volatile Tri-Pool LP position will most likely remain above 30% APY even after yvyYB yield is reduced to sustainable levels.
Motivation:
Building high-revenue generating Curve DAO Protocol-Owned-Liquidity will lead to increased Curve Protocol Revenue over time, while simultaneously supporting the stability of crvUSD and the long term value growth and liquidity depth of CRV and YB tokens through a highly productive autocompounding liquidity sink.
For:
- Increase Curve Protocol and Curve DAO Revenue, year after year as the CRV DAO Volatile Tri-Pool Position grows.
- Build a permanent, highly productive liquidity sink for crvUSD, CRV, and YB in order to support long-term value growth and liquidity of CRV and YB tokens as well as to support crvUSD peg stability.
- DAO owned asdCRV and yvyYB Vault positions would compound a portion of all veCRV and veYB revenue permanently, reducing CRV and YB selling pressure while increasing Curve DAO Revenue over time.
Against:
- 5% up front reduction in veCRV staking rewards.