A proposal to add the Euler DAI staking Senior tranches as a new yield source to the Senior Best Yield strategy.
Following the 2022-2023 roadmap, the DAO agreed to add new yield sources to the BY strategy, specifically
- The Senior Tranche of the Clearpool USDC (Wintermute) PYTs through IIP-26 later discontinued with IIP-30
- The Senior Tranche of the Clearpool DAI (Folkvang) PYTs through IIP-27 later discontinued with IIP-30
- The Senior Tranche of Euler staking DAI PYTs through IIP-31
The Euler staking PYTs, on the USDC, and USDT markets, have been successfully integrated into the newborn Senior Best Yield strategy offering higher performances and risk-adjusted access to a new market.
Today we want to continue the discussion on the last missing stablecoin piece to join the Best Yield aggregation layer:
- The Euler staking PYTs for the DAI market, with specs available on GitHub here
Similar to previous integrations, Euler staking ones would benefit doubly the Idle ecosystem
Currently, the Euler DAO is discussing to extend the duration of the EUL incentives distribution indefinitely to its staking markets with the following specs:
|eWETH||9,000 per epoch|
|eUSDC||5,000 per epoch|
|eUSDT||1,000 per epoch|
The Euler DAI staking PYTs will benefit from the Peg Stability Model (PSM) of Maker DAO to swap 1:1 DAI to USDC and enjoy indirectly the staking rewards distributed by Euler DAO.
Euler hit the mainnet in December 2021. Euler’s Perpetual Yield Tranches are live since June 2022.
Euler is a non-custodial permissionless lending protocol on Ethereum that helps users to earn interest on their crypto assets or hedge against volatile markets without the need for a trusted third party.
Euler protocol features a number of innovations not seen before in DeFi, including permissionless lending markets, reactive interest rates, protected collateral, MEV-resistant liquidations, multi-collateral stability pools, and much more.
From the security perspective, Euler has been committed to develop various safe mode measures and introduced the Oracle Risk Grading System. This mechanism empowers Euler DAO to enable lending and borrowing on any ERC-20 token thanks to Uniswap v3 TWAP (Time Weighted Average Price). The risk system estimates the oracle manipulation cost, allowing tokens to unlock specific functionalities (e.g. collateral) only above a certain security score.
We are going to leave this thread open for comments regarding additions, and in about 72 hours, if there are no objections, we will proceed with the Temperature Check.