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.
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.
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.