PIP-2 Phase 3 v2 Ideas Collector / Proposal

Since phase 3 of PIP-2 can’t be executed as planned I would like to reopen the discussion regarding the yield collecting strategy.

Proposal
Instead of putting all :egg:s in one :basket: we should go for a whole :basket: of different :basketball: :baseball: :soccer: :football: :tennis: :volleyball: :slight_smile: To be more precise we should diversify across assets and asset classes (e.g. stables, blue chips, non stables), blockchain networks both L1s and L2s (e.g. Polygon/Avalanche/BSC), strategy platforms (e.g. StakeDao/Curve/Aave) and strategies (passive, futures, staking). Of course this increases the management efforts on the POPCorn core team side significantly which is why the basket should consists a small and fixed size of positions (maybe 3-5?). If every position differs in several dimensions at the same time we can create a basket of highly heterogeneous positions.

Next step: Collecting position proposals
Please describe each position including the dimensions described above.

@ToBe proposal
Ethereum Network / StakeDao Platform / ETH Asset / “ETH Covered Calls” Strategy
The ETH Covered Calls strategy by StakeDao on the ETH network is advertised as well suited for slightly bear market conditions and leads to about 20% yield in form of ETH.

4 Likes

Strategy 2 by @ToBe
Fantom Network / Yearn Finance Platform / FRAX Asset / FRAX Yield Farming Strategy
Yearn offers a FRAX yield farming strategy utilising Scream or Iron Bank (whichever performs best) on the Fantom network. Since FRAX is also an “algo stablecoin” (like UST) we should proceed with caution but until now it looks stable. Expected APY around 28%.

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Perhaps this sort of plan could help further establish Popcorn’s core value proposition? I.e., we use our DeFi expertise to assemble and manage a diversified (minimally correlated) basket of (cash-flow-producing) crypto assets to fund elected beneficiaries and return capital to investors.

3 Likes

This is indeed an interesting idea! Also, it would bring us closer to that 20% APY goal for Butter. @a11n @krychek what do you think?

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Obviously increasing scope beyond stablecoins increases risk overall - I’d suggest we should have a well defined split of stable/blue/non-stab which can be agreed by governance vote.

Seems like a good idea to me and basically gets us more into the position of being a full crypto-exposure portfolio option rather than just stables…

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