CIP #5 - Yield Farming Index

Status: Proposed Discussion Link: https://gov.cook.finance/t/yield-farming-index/86 Created: 11/01/2021

Executive Summary

Currently there are many stable coins on the market, and Curve Finance pool provides really good APY on those stable coins such as MIM, USDN, LUSD, aLUSD etc. It would be great to have a strategy to cover those stable coin yield farming on Curve. (Or even better to use Yearn Finance combined with Curve). Since the Cook platform enables indexes to change component/allocation based on the market, the external protocol to do stable coin yield farming and allocation can be changed in the future. In theory we can just make the allocation in the stable coin yield farming portfolio as the TVL in Curve Vault Depth.

Problem Statement

Stable coin yield farming is always attractive to those in DeFi but the Cook platform doesn’t have any way to provide this popular feature.

Proposed Solution

Overview

Introduce a portfolio composed of ycrvMiM, yrcvIRONBANk, ycrvALSUD, ycrvUSDN, ycrvLUSD, ycrvFRAX, and the allocation should be by the TVL of each stable coin in the Curve Vault

Rationale

Stable coin yield farming is always attractive to those in DeFi. Since Cook is a powerful portfolio management platform, it should provide good opportunities for stable coin yield farming.

Specification

To request Cook to add a stable coin yield farming index: ycrvMiM, yrcvIRONBANk, ycrvALSUD, ycrvUSDN, ycrvLUSD, ycrvFRAX, and the allocation of each component should be based on their Curve Pool TVL. This index should update allocation or even remove/add assets based on the current stable coin market conditions through proposals and approvals from the DAO.