Thanks everyone for all of the feedback you provided on vault selection. I wanted to share out the results so far, and give G9’s recommendations on how to best move forward.
So, here’s the feedback we received, along with a little commentary from our team.
Top chains people wanted to launch on were clear: Arbitrum and Base were tied with 35% of the vote. Following that was Mainnet with 14% and then there were a number of other L1s/L2s that were write-ins.
Unsurprisingly the top tokens people want to deposit are USDC, ETH and POOL. Liquid staking tokens like rETH and stETH were also very popular. Behind those we have some other surprising choices. A number of people (27%) said they wanted to see stablecoin LP tokens and there are also quite a few people interested in depositing OP or ARB.
Note that there are some conflicting desires here. There is a clear preference for single asset vaults, stablecoins and ETH, but there are few options for that on Base. The biggest yield source there is Aerodrome, but that is primarily LP pools. Similarly, people want to deposit OP, ARB and POOL but there are really low yields for ARB and OP, and POOL can only be farmed as an LP on Velodrome right now.
As there are more options for stablecoin/ETH vaults on ARB, we think it would be best to launch on Arbitrum first, and then shortly thereafter on Base.
In terms of security, I think there have been some enlightening comments made on this post. MY take is we should be adding some information to the vault details page of cabana (perhaps into the vault lists?) highlighting key security considerations for each vault. Here are the answers people provided on security questions:
When it came to yield sources opinions were very diverse but a few protocols stood out including Aave, Yearn and Lido.
Recommended Yield Sources & Vaults
Based on all of this information, and the realities of what is available on various chains, these are the yield sources vaults we recommend we move forward with to start:
1: Aave
(with Yield Daddy wrapper)
Chains/Assets we gain access to:
OP: USDC - 4%, USDT - 4.7%, DAI - 4.55%, SUSD - 4.3%
BASE: USDbC - 18%
ARB: USDC - 4.6%
Estimated Cost:
Wrapper: $0 * Already exists and is audited
Integration Audit: $0 * Will be re-audited in upcoming C4 audit
Total: $0
2: Yearn
(It appears this will not require a wrapper)
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
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 * Wrapped 4626, wrapper has not been audited (please correct me if this is wrong)
Integration Audit: $0 * Included with upcoming C4 audit
Total: $0
As these 3 yield sources are all likely to be included in the upcoming audit and don’t appear to require a new wrapper, we think these are the most impactful vaults we can launch with. This would allow us to have 14+ unique vaults.
By pursuing these integrations, along with partnerships with the organizations we believe we can make the most immediate impact for the lowest cost.
Other protocol we believe we should continue to explore integrations with:
Yield sources to integrate with bridged exchange rate:
Some assets, like Lido’s stETH and RocketPool’s RETH, have been bridged to L2s but cannot be used as a yield source. That’s because the underlying ‘yield’ is accruing on L1, and so it cannot be measured on L2 unless that value is bridged or provided by an oracle. This is additional infrastructure that ideally is run by the protocols themselves.
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, if a wrapper is created it is a compelling choice for ETH mainnet given the sheer scale of their TVL ($30.1 billion!).
Chains/Assets we gain access to:
Mainet: stETH - 3.3%
OP: stETH - 3.3%
Estimated Cost:
Wrapper: $?
Audit: $20,000 - 50,000
Total: $XX,XXX
RocketPool
Rocketpool requires a custom wrapper and exchange rate bridge to integrate on an L2. Also, the partner/maintainer would need to have infrastructure and push updates on each chain.
The G9 team has been in discussions with RocketPool for a few months and our understanding is there is a 4626 wrapper in development but we do not know the timeline for this.
Chains/Assets we gain access to:
Mainet: rETH - 2.94%
L2?: rETH - 2.94%
Estimated Cost:
Wrapper: $?
Audit: $20,000 - 50,000
Total: $XX,XXX
Other yield sources to consider in the future:
OETH / OUSD / Origin Protocol
Origin protocol is a yield aggregator which automatically rebalances across a number of yield sources including Morpho, Compound, Convex and Aave. It is 4626 compatible but is currently mainnet only. However, Origin will be launching on OP in the near future. Depending on their technical implementation it could be something we integrate on OP.
Assets we gain access to:
Mainnet: OETH - 4.55% , OUSD - 6.55%
(In the future)
OP: OETH - 4.55% , OUSD - 6.55%
Estimated Cost:
Wrapper: $?
Audit: $20,000 - $50,000
Total: $XX,XXX
Velodrome
This will require a wrapper, but it would get us access to great yield, especially LP tokens. But we need to prove demand for those types of tokens/partnerships and can do that at low cost with Yearn and Beefy to start.
Chain/Assets we gain access to:
OP: ALETH/WETH (alchemix eth/weth) - 11.95%, USDC/ALUSD - 15%, USDC/DOLA - 35%, WSTETH/WETH - 8.6%
Estimated cost:
Wrapper $?
Audit: $20,000 - 50,000
Total: $XX,XXX
Aerodrome
This will require a wrapper but will get us access to good LP token yields on Base. But we need to prove demand for those types of tokens/partnerships and can do that at low cost with Yearn and Beefy to start.
Chain/Assets we gain access to:
BASE: DOLA/USDC - 46.8%, USDC/USDBC - 9%, WETH/WSTETH - 7.5%
Estimated cost:
Wrapper ?
Audit: $20,000 - $50,000
Total: $XX,XXX
Maker / DAI Savings
The DSR is supposedly 4626 compliant, and a long time partner of PoolTogether. They deliver a solid 5% in a large market
Chain/Assets we gain access to:
Mainnet: DAI - 5%
Estimated cost:
Wrapper ?
Audit: $20,000 - $50,000
Total: $XX,XXX
Morpho
Morpho was originally an Aave/Compound fork but they now have created Morpho Blue a permissionless lending protocol on EVM.
Chain/Assets we gain access to:
Mainnet: USDC - 21%, WETH - 8.5%
Wrapper ?
Audit: $20,000 - $50,000
Total: $XX,XXX
)
Vault audited