SIP-51: Add Compound Finance’s USDC strategy to the USDs strategy basket

Author: Sperax Core Team
Reference: USDs Yield strategies, Compound Finance,
Created: July 10, 2023
Labels: Yield-Strategies

Simple Summary / Motivation

Broaden the choice of single-side USDs protocol yield strategies by whitelisting the Compound USDC supply strategy.

Overview

USDC is the most significant collateral in the USDs collateral basket. The only whitelisted single-sided strategy is Stargate-LP USDC: USDC from vault-core is deposited into the Stargate USDC pool and the LP tokens are staked in the Stargate farm. Revenue generated from the strategy is in the form of fees (in USDC) and farm rewards (in STG)

To broaden the single-sided strategy choice, the team offers to use one more strategy at Compound Finance where USDC supply currently generates ~7% in rewards (COMP) and ~0.6% in fees (USDC).

The yield generated by the Compound strategy will be directed to USDs holders following the Auto-Yield distribution mechanism and to the SPA stakers with the Staking protocol mechanism.

Technical Specification

  • Whitelist Compound USDC supply strategy
  • Deploy a portion of USDC collateral for Compound strategy

Voting

For:

Whitelist Compound USDC supply strategy and deploy a part of deploy USDC into it.

Against

Don’t whitelist the Compound USDC strategy.

  • For
  • Against
0 voters
1 Like

This topic was automatically closed after 2 days. New replies are no longer allowed.