Pool Dollar Yield
You can learn more about this strategy and track live metrics by visiting:
Pool Dollar Yield is a risk-adjusted return strategy that diversifies stablecoins across 3crv-based pairs to earn yield on Curve and Convex
This strategy is built with a few principles in mind:
- 1.Principal protected – Risk management measures are implemented that prioritize safety.
- 2.Risk-adjusted yield – Vault autonomously rebalances across different lending markets to optimize returns.
- 3.Real-time – Users can seamlessly enable, disable and update strategy at any time.
When stablecoins are deposited into Fennec Stash Vault, users can enable or disable Pool Dollar Yield Strategies. When enabled, stablecoins are forwarded to a diversified set of yield-earning sources. As the conditions of the market changes, the contract rebalances between sources to optimize the yield earned.
The strategy only routes to reputable lending primitives in the Ethereum (and Polygon) ecosystem.
Stablecoins are diversified and staked across Curve gauge pools to accrue rewards and compound positions in CVX and CRV. Rebalance takes place under the following conditions:
- 1.Changes in liquidity on Curve.
- 2.Changes in distribution of rewards in CRV and native tokens. Particularly, if the 3 month average of a new pool exceeds 1% of the current pool (including rebalance fee costs).
- 3.Change in pool compositions (balance).
Stablecoins and DeFi protocols must satisfy the following inclusion criteria to be considered for the Pool Dollar Yield strategy.
- Audited by reputable auditing firms or consultants.
- Demonstrated significant TVL and lived on Ethereum mainnet for at least 6 months.
- Contract level upgrades or parameter changes by a centralized party requires thorough documentation and process.
- Liquid on DEX (with sufficient volume to support vault size) or easily exchangeable into spot assets through protocol withdrawals.
- The Loan to Value (LTV) ratio must remain within certain % to ensure liquidity for withdrawals.
- Alerts will be triggered if there are large changes of LTV over a 30 days average window, large movement (particularly withdrawal) from a pool, or significant changes in TVL is detected.
- No capital will be borrowed against the underlying assets and therefore will not expose token holders to credit risks.
- Custody of the assets must not be held by a trusted third party.