Yield Source / Vault Recommendations for Launch

PoolTogether Updates 🧙🏼‍♀️ Operations
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We recommend the following yield sources to be added to the Vault Factory.

Do you approve?

  1. Aave
  2. Yearn Finance
  3. Beefy Finance
  4. Dai Savings Rate
  5. Lido

The process:

These yield sources and vaults will be considered in the upcoming C4 Audit, and assuming no issues arise, they will be added to Cabana Factory.

After many rounds of technical review by Generation, a survey on yield sources, discussions with the council, and the PoolTogether community both on Discord and on the governance forums, we (the Generation team) wanted to do a final signaling vote on the yield sources that will be integrated into Cabana Factory with the upcoming launch. Our intention is that these yield sources and vaults, will be available as options directly inside of Cabana Factory. For example a user would be able to select Optimism as their chain, then select Aave as a yield source, and select USDC as a vault, and then could deploy a prize vault.

Snapshot signaling vote here

  • This list assumes nothing very surprising/unforseen/critical is found in the current vault audits, and the order of the chains could change depending on different factors

April:

Launch on OP with…

Aave (USDC, WETH, DAI)

Yearn (DAI, USDT, USDC.e, sUSD)

Beefy (wstETH-ETH LP, ETH, alUSD-USDC.e sLP)

May:

Launch on ARB with…

Aave (DAI, USDC, LUSD)

Beefy (gDAI, RETH, USDC, wstETH, possibly WBTC-ETH LP?)

June:

Launch on Base with

Aave ( USDbC, USDC)

Yearn (Aerodrome LP tokens?)

Beefy ( DOLA-USDC LP, cbETH-ETH?)

Launch on Mainnet with

Lido (STETH)

Dai Savings Rate (DAI)

-/------------------------------/-

We will also note there are other integrations we believe we should continue to pursue, including an L2 RocketPool or Lido integration, and integrations with Origin Protocol, Morpho Blue and others. Some of these integrations will require custom code or infrastructure or wrappers to be built and maintained, others won’t need wrappers, but are not yet deployed on L2.

Additional details on each of the recommended yield sources:

1: Aave

Integration Audit: Will be audited in PT’s upcoming C4 audit

Integration issues: Minor issue: Aave assets can be paused or frozen

Chains/Assets we gain access to:

OP: USDC - 14%, USDT - 4.7%, DAI - 4.55%, SUSD - 4.3%
BASE: USDbC - 18%
ARB: USDC - 4.6%
Mainnet:

Estimated Cost:

Wrapper: $0
Integration Audit: $0 Will be included in upcoming C4 audit

Total: $0

2: Yearn

Integration Audit: Will be audited in PT’s upcoming C4 audit

Integration issues: Prize vault can incur unexpected losses if the underlying strategies incur losses.

Chains/Assets we gain access to:

OP: DAI -12%, USDT - 11%, WETH -5.67%, & a handful of liquid staking LP pools

  • this list assumes we can wrap v2 vaults with v3 -technical analysis of this assumption is underway.

Estimated Costs:

Wrapper: $0 Native 4626, no wrapper needed
Integration Audit: $0 Included with upcoming C4 audit

Total: $0

3: Beefy

Integration Audit: Will be audited in PT’s upcoming C4 audit
Integration issues: None found

Chain/Assets we gain access to:

OP: WSTETH/ETH LP at 8%, ETH/RETH - 4.8%
ARB: GDAI (GAINS NETWORK DAI) -25%, USDC - 22%, USDT/ARBUSDC.E - 15%, along with a variety of other liquid staking LP pairs

Estimated Costs:

Wrapper: $0
Integration Audit: $0 Included with upcoming C4 audit

Total: $0

DAI Savings Rate / sDAI

Wrapper/Yield Vault Audit: Wrapper is audited by Chainsafe Audit: Will be audited in PT’s upcoming C4 audit
Integration issues: none found

Chain/Assets we gain access to:

Mainnet: DAI - 5%

Estimated cost:

Wrapper $0
Integration Audit: $0

Total: $0

Lido

Requires a custom wrapper and exchange rate bridge to integrate this on an L2. Also, the partner/maintainer would need to have infrastructure and push updates on each chain. However, on mainnet we can wrap Lido to be 4626 compliant with Yield Daddy. This is an attractive choice, given the sheer scale of their TVL ($30.1 billion!).

Chains/Assets we gain access to:

Mainet: stETH - 3.3% (30b TVL)

Estimated Cost:

Wrapper: $0
Integration Audit: $0 Included with upcoming C4 audit

Total: $0

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Was having trouble adding links to the post, so here are the links to the various yield sources / wrappers and their audits:

https://aave.com

Wrapper/Yield Vault Audit: Yield Daddy wrapper audited by yAudit 08-2022-Timeless-Yield-Daddy | yAudit Reports

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https://yearn.fi/

Wrapper/Yield Vault Audit: Audited by yAudit - yearn-security/audits at master · yearn/yearn-security · GitHub

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https://beefy.com/

Wrapper/Yield Vault Audit: Wrapper audited by by Zellic - https://github.com/beefyfinance/beefy-audits

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Dai Savings Rate

Wrapper/Yield Vault Audit: Wrapper is audited by Chainsafe Oasis Savings DAI - Smart Contract Audit by Chainsecurity

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https://lido.fi/

Wrapper/Yield Vault Audit: Yield Daddy wrapper audited by yAudit 08-2022-Timeless-Yield-Daddy | yAudit Reports

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Sounds good!
Audit and testing they are working fine is important.
About adding them to the Cabana Factory, yeah, we can do that and probably makes creating new Vaults a bit faster with them but someone could input the ERC4626 address of the yield source anyway and it’s generally better to have people deposit into the “main” vault so liquidations and claims are more efficient, more of the same vault just costs more gas but it’s fine to give people the option.
Also gotta make sure the auto naming works fine in the UI, standard Beefy Vault names could get pretty long ^^

Also side note: The Snapshot timing is a bit unlucky, Friday to Monday over the weekend, in this case it’s not that dramatic but if we wanna get good results and high outcome, longer timeframe or during the week so we can announce on the Swim Meet too would be good.

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Somewhat offtopic, but while there could be valid reasonings to deploy another vault with the same yield source, we could show the vaults already deployed with that yield source to the user in the factory app - at least letting them know if one with the same settings/goal already exists.

3 Likes
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Also looking forward to LUSD (30d avg of >12% / 6m >6%) and SUSD (30d >17% / 6m >6%). Both assets open the door for very mission-driven partnerships.

An Aave GHO prize vault would be another crucial addition. Has potential for 3rd party incentives.

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I wanted to share some updates on the upcoming launch on Optimism, and the status of our various integrations/partnerships.

As some may recall from this post and a subsequent signaling vote, we sought input from the community on what chains and yield sources to integrate with PoolTogether. We also made a commitment to integrate certain yield sources into Cabana Factory.

Leading up to and following the vote, the Generation team has been reviewing code and coordinating with a number of different partners with the goal of getting more vaults added to Cabana Factory as default yield sources that can be used to back Prize Vaults.

These are the Optimism integrations we are currently pursuing:

Aave

Beefy

Yearn v2

RocketPool

Let’s look at each of these one by one.

Aave:

In order to launch Aave vaults, and capture the bonus incentives they recently started distributing, for each vault we need to deploy a custom wrapper that also captures the bonus incentives. For the launch on Optimism next week, the Generation team will manually deploy Prize Vaults for USDC, WETH, DAI, LUSD. After launch, the Cabana Factory will be updated such that users could prize wrap any vault on Aave v3, all from within Cabana Factory.

Aave Vaults we will integrate into Cabana Factory for launch:

USDC Aave - Open Source Liquidity Protocol

WETH

DAI

LUSD

Beefy:

In order to launch Beefy vaults, each individual vault must be wrapped with a 4626 wrapper. Beefy has a wrapper and it is audited. We are in discussions with Beefy to get a series of vaults wrapped in 4626. At a minimum we will be aiming to wrap these vaults: WSTEH/ETH and the ETH HOP vault on Optimism. We will do this manually to start, but following launch we will be working to integrate a Beefy Vault 4626 wrapper into Cabana Factory, but that does not need to block the deployment of the initial Beefy Prize Vaults.

Beefy Vaults we will integrate into the Cabana Factory shortly after launch

WSTETH/ETH - Beefy

ETH LP HOP - Beefy

(This list may change depending on discussions and decisions between Generation and the Yearn team)

Yearn:

Yearn V3 vaults are already 4626 compliant and don’t have any maintenance required. Once we launch on a chain where V3 Vaults are available, we will be able to quickly add those vaults to Cabana Factory.

The only Yearn vaults on Optimism are Yearn V2 vaults. The Yearn team was kind enough to create a wrapper for the v2 vaults that turns them into 4626 vaults. This wrapper has not (yet) been audited.

We are currently in partnership discussions with Yearn and are coordinating with them to get a number of the v2 Optimism vaults wrapped. In addition to deploying a wrapper for each Yearn V2 vault, once deployed each wrapper requires daily yield management through manual review or additional automation. So we need to sort out who will manage that. Once we resolve who manages the wrappers, we can integrate those wrappers into the factory.

We are also exploring how we can get the Yearn v2 wrapper audited and will be displaying appropriate warnings to Cabana Factory users until the code has been successfully audited.

Yearn Vaults we are proposing to integrate into the Cabana Factory shortly after launch

USDT on OP Yearn Vaults

DAI on OP Yearn Vaults

USDCe on OP Beefy

WETH on OP Yearn Vaults

(*This list may change depending on discussions and decisions between Generation and the Yearn team)

RocketPool

RocketPool recently completed their 4626 wrapper and exchange rate Bridge for rETH on Optimism and the code is now in audit!

Once the audit is complete we will work with RocketPool to get the wrapper deployed and will add RETH on optimism to Cabana Factory

We are proposing to integrate the Rocket Pool Vault into the Cabana Factory shortly after launch

RETH on Optimism (wrapped)

—–

This is our most detailed timeline for the Optimism deployment. Following Optimism we expect to launch on additional chains including BASE, ARBITRUM and others, we will share an update on those plans in the coming weeks. With each deployment, new vaults will be unlocked on Beefy, Yearn & Aave and we will follow the same process of working with partners to deploy wrappers and will then add those yield sources to Cabana Factory.

6 Likes
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So much yield!
Super, super excited for this week.

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I just noticed a few typos in the above comment that I can’t change because the post is now locked. So, to clarify above I mention a USDC.e vault on Yearn and accidentally have a link to Beefy, the correct link to the Yearn USDCe vault is this:

1 Like