Clearpool PYTs as a new yield source for BY - Folkvang


Treasury League


A proposal to add the Folkvang Clearpool DAI Senior tranches as a new yield source for the idleDAI Best Yield vault.



As @Teo reported in the Mandate 3 post, one of the goals of Leagues for the July - September period is to add new yield sources to the Best Yield strategy


After the successful integration of the Wintermute Clearpool PYTs, today we want to open the discussion on a new integration: the Folkvang DAI Clearpool tranches.

Similar to Wintermute’s integration, Folkvang’s one would benefit doubly the DAI token holders

Perpetual Yield Tranches are live since December 2021 holding a cumulative TVL of up to $50m.

Clearpool (Folkvang) pool is open since May 2022 and it has been part of the PYTs offering since October 2022. The Folkvang pool has a size of $9m with an average utilization rate of 84%. Folkvang has a borrowing capacity on Clearpool of up to $151m, i.e. the second largest borrower on Clearpool.


To provide a wider stablecoin offering, users can deposit DAI into the Folkvang PYTs. This smart contract will leverage the Peg Stability Model (PSM) of Maker DAO to swap 1:1 DAI to USDC, avoiding any slippage or impermanent loss risk.

Currently, Folkvang pool provides 8.88% APY with an 84% utilization rate (source). Thanks to Clearpool’s first-of-its-kind formula, APYs can be maintained stable by high pool utilization up to borrower capacity - equal to $151m for the Folkvang pool.

Clearpool details

Next steps

We are going to leave this thread open for comments regarding this change, and in about 72 hours, if there are no objections, we will proceed with the Temperature Check.


Here’s a Medium article overview about the PYTs integration as yield sources into BY

Take a look :eyes:



The bootstrap liquidity phase for this pool is taking longer than expected, hence we have decided to delay the voting phase.

Once successfully bootstrapped, we will open the pools :ballot_box:

Feel free to share anyway any feedback you might have about this pool.


Update #2

With the aim to speed up and facilitate liquidity deployment and make BY and PYTs ready to onboard new capital, we will open today the temperature check for the integration of the Folkvang DAI (Senior) PYTs into BY.

The Governance vote (from proposal discussion to IIP execution) can take up to 15 days and could end up being a blocker for new liquidity deposits. Opening sooner the Temperature Check could let the DAO share his preferences about a new integration while Leagues are working to develop and bootstrap a new pool.

A positive integration vote would not mean that the pool will be receiving BY funds right after. Some minimum requirements will still be needed:

  • A minimum liquidity threshold in the pool.
  • Sufficient coverage from Junior funds to Senior ones.

We are also working to provide a concise and common framework of minimum requirements to have Senior PYTs integrated as yield sources of BY to be used in future votes.


Temperature check voting

The voting phase for the Folkvang Clearpool DAI PYTs integration as a new yield source for BY starts now :ballot_box:

  • For - Agree with the Folkvang Clearpool PYTs listing as a new yield source for BY
  • Against - Disagree with the Folkvang Clearpool PYTs listing as a new yield source for BY

:arrow_right: Poll for $IDLE holders: HERE
:arrow_right: Poll for $IDLE stakers (stkIDLE holders): HERE

:alarm_clock: Polls will close on 2022-11-10T14:30:00Z

The final $IDLE voting weights will be calculated using the approved calculator.

Looking to delegate your vote on Snapshot? Follow the official Snapshot guide.

Let your vote count! :writing_hand:


Temperature check results

Temperature Check passed :white_check_mark:

The proposal for integrating Clearpool’s Folkvang’s PYTs to the idleDAI BY vault is now ready to hit the on-chain phase!


The official IIP-27 has been published → Forum post

Visit the forum post, to find the links to the voting pools for IDLE and stkIDLE holders.