Author
Treasury League
Summary
A proposal to add the Portofino Clearpool USDC Yield Tranches as a new yield source for the USDC Best Yield strategies.
References
- Euler staking PYTs as new yield sources for BY post
- Update Best Yield USDC, USDT, WETH yield sources post
- Fasanara Digital website
Background
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:
| Strategy | Token | Underlying markets |
|---|---|---|
| Senior BY | DAI | Aave, Compound, |
| Junior BY | DAI |
Proposal
This proposal aims to add a new Clearpool Yield Tranche to the Best Yield strategies based on USDT:
- Clearpool USDT (Fasanara) YTs, with specs available on GitHub here
Similar to previous Clearpool’s integration, Fasanara’s one would benefit doubly the Idle users
Yield Tranches are live since December 2021 holding a cumulative TVL of up to $50m.
Fasanara details
Fasanara Digital is a quantitative investment fund applying a scientific approach to investing in cryptoassets with the aim to achieve exceptional risk-adjusted returns for its investors.
Fasanara Digital was started in 2019 as part of Fasanara Capital, a 200 people London-based hedge fund founded in 2011 that specializes in alternative credit and fintech strategies. Overall, Fasanara Capital manages more than $4 billion across different funds.
With a team of 15 people fully dedicated to investments and development in digital assets, Fasanara Digital manages a delta-neutral high turnover fund specialized in market-making and arbitrage strategies. The fund trades approximately $10 billion per month in volume on both spot and derivatives on all major trading venues and has approximately $75 million in equity.
Clearpool (Fasanara) pool is live since the end of March. The Fasanara pool has a size of ~$1m and a maximum borrowing capacity of up to $40m. Credora rates the borrower with an AA.
| Protocol | Borrower | Capacity | Pool size | Credora’s rating |
|---|---|---|---|---|
| Clearpool | Portofino | $40,390,683 | 1,152,804 | AA |
At the time of writing, the Fasanara pool provides 14.25% APR with a 76% utilization rate (source).
Risk rating
Following the new version of the risk rating framework, the Clearpool (Fasanara) 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 24% coverage on Senior funds coming from the Junior counterparty.
Next steps
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.
Poll for $IDLE holders: 
Polls will close on 
