A proposal to add the Portofino Clearpool DAI Yield Tranches as a new yield source for the DAI Best Yield strategies.
- Euler staking DAI PYTs as a new yield source for BY post
- Update Best Yield DAI yield sources post
- Portofino technologies website
After the recent exploit on Euler, Leagues have suggested to remove the Euler Yield Tranches from the basket of yield source of Best Yield strategies as a precautionary measure before a new audit is completed.
The current yield source of the Best Yield strategies would then be:
|Senior BY||DAI||Aave, Compound,
This proposal aims to add a new Clearpool Yield Tranche to the Best Yield strategies based on DAI:
- Clearpool DAI (Portofino) YTs, with specs available on GitHub here
Similar to previous Clearpool’s integration, Portofino’s one would benefit doubly the Idle users
Yield Tranches are live since December 2021 holding a cumulative TVL of up to $50m.
Portofino technologies is a high frequency trading market maker that uses the borrowed funds as trading capital, providing superior returns thanks to its advanced machine learning & stochastic control techniques.
Clearpool (Portofino) pool is live since early March. The Portofino pool has a size of ~$1m and a maximum borrowing capacity of up to $24m. Credora rates the borrower with an A.
|Protocol||Borrower||Capacity||Pool size||Credora’s rating|
At the time of writing, the Portofino pool provides 16.55% APR with an 81% utilization rate (source).
The pool will use the Peg Stability Model (PSM) of Maker DAO to swap 1:1 DAI to USDC, avoiding any slippage or impermanent loss risk.
Following the new version of the risk rating framework, the Clearpool (Portofino) Yield Tranches can be considered as a valid market to become a new yield source of the Best Yield strategies.
In order to trigger any BY deployment, the Yield Tranches will need to have at least a 30% coverage on Senior funds coming from the Junior counterparty.
We are going to leave this thread open for comments regarding this proposal, and tomorrow, if there are no objections, we will open the temperature check.