Clearpool YTs as a new yield source for USDC BY - Wincent

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Summary

A proposal to add the Wincent Clearpool USDC Yield Tranche as a new yield source for the USDC Best Yield vaults.

References

• Clearpool YTs as a new yield source for USDT BY - Fasanara post
• Clearpool YTs as a new yield source for USDC BY - Portofino post
• Clearpool YTs as a new yield source for USDC BY - Fasanara post
• Wincent website

Proposal

After the successful integration of multiple Clearpool YTs in the USDC and USDT markets, this new proposal aims to add the latest Clearpool Yield Tranche to the Best Yield USDC vaults:

• Clearpool USDC (Wincent) YTs, with specs available on GitHub here

Similar to previous Clearpool’s integration, Wincent’s one would benefit doubly the Idle users

@Biaf

By integrating Clearpool USDC (Senior) tranches as a new yield source for the USDC BY strategy, we can create a two-side benefit for the Idle protocol:

1. The USDC BY strategy can add a new yield source, besides the usual Aave and Compound, able to offer an average APY in the 5% to 10% range. Currently, Aave and Compound offer APYs lower than 1%. This significant increase in yield can benefit current BY LPs and attract new users to the protocol.
2. The USDC BY funds flowing to the Senior side of Clearpool PYTs can create a stable source of funding for the Senior tranches and consequently incentive new Junior liquidity deployments thanks to the boosted APYs available (with an expected average APY in the range of 10% to 20%).

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

Wincent details

Wincent is a leading crypto market maker with $3B+ daily volume and 300K+ daily transactions.

Since 2018, Wincent develops software for algorithmic trading and market analysis.
Our true edge lies in our talented team with experience from Google, Facebook, academia, data science, competitive programming, math and physics competitions (IOI, IMO, IPhO, ACM ICPC), sports betting and poker.
Our algorithms trade $300 million – $3.5 billion daily on the top cryptocurrency exchanges worldwide 24/7/365.

Clearpool (Wincent) pool is live since the beginning of September. The Wincent pool has a maximum borrowing capacity of up to $27m. Credora rates the borrower with a BB.

Protocol	Borrower	Capacity	Pool size	Credora’s rating
Clearpool	Wincent	$27,000,000	$ -	BB

At the time of writing, the Wincent pool has been deployed and will soon start the borrowing activities.

Risk rating

The borrower has been already analysed internally following the risk rating framework. The Clearpool (Wincent) Yield Tranches can be considered as a valid market to become a new yield source of the Best Yield vaults.

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.

Next steps

We are going to open the temperature check right after the publication of this post.

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Temperature check voting

The voting phase to add Clearpool’s Wincent USDC YTs to the USDC Best Yield vaults starts now

• For - Agree with the addition of Clearpool’s Wincent USDC YTs to USDC Best Yield
• Against - Disagree with the addition of Clearpool’s Wincent USDC YTs to USDC Best Yield
• Discuss more - Discuss more the addition of Clearpool’s Wincent USDC YTs to USDC Best Yield

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

Polls will close on 2023-09-11T15:30:00Z

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!

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Temperature check results

Temperature Check passed

Leagues will continue the process of integration of the new underlying market into BY. The actions required will be included in the next IIP.

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It has been brought to our attention that Wincent, due to some liquidity capacity constraints, asked Clearpool to set a cap on the pool. This cap would have limited the possibility of free deposit from our Best Yield and would have needed ad-hoc adjustments on the Best Yield optimization algorithm.

Due to these circumstances, we cannot finalize the integration of the pool into our product suite.

The Yield Tranches codebase will stay in place and will be ready as soon as Wincent decides to start borrowing on Clearpool without any cap limit. Depending on changes in rating and the borrower’s capacity from Credora, we will see if a new temperature check vote is needed or if we can accept the one done as still valid and proceed with the on-chain voting phase.