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Rari Capital DAORari Capital DAOby0x552C35f51A52fa1bF1CA481A9a57D464474248D20x552C…48D2

Kickstart new Fuse pools using USDC and DAI yield pools

Voting ended almost 5 years agoSucceeded

Summary

Allow USDC pool and DAI pool to proactively deposit upto $100k each in upto 10 Fuse pools at any given time, as long as they satisfy:

  • Safe risk score (better or equal to D as per old RSS, or less than or equal to 2 as per new RSS)
  • TVL of USDC or DAI in pool < $1 million
  • Less than 3 months old "Proactively" here implies the deposit will be made even if no yield exists yet, the hope is that depositing will help kickstart activity on the Fuse pool and hence generate new yield.

Deposits will be pulled after 1 month of inactivity.

Background

New Fuse pools have been aggressively made, however some of them lack liquidity. USDC and DAI pools have earned decent yields, however they would benefit if new yield sources were generated.

Abstract

New Fuse pools face a chicken-and-egg problem where users want to lend USDC or DAI into new pools only when there's already yield (and therefore borrow demand) available. And users want to deposit collateral and borrow USDC or DAI only if those stablecoins are already available to borrow in the pool. Using the yield aggregator to deposit these stables will enable kickstart activity in these pools.

Motivation

Kickstarting activity in new Fuse pools has obviously beneficial short-term outcomes for Fuse pool users and Rari Capital. It also has beneficial medium and long-term outcomes for the USDC and DAI pools - as this new activity bootstrapped in turn generates yield that will be exclusively available to them and the Fuse pools, which could potentially be in excess of the yield that was otherwise being earned.

Picking only pools less than 3 months old with low TVL ensures that the pools selected deserve this proactive deposit.

Off-Chain Vote

Allow proactive deposits
109.25K 100%
Do not allow
36.6 0%
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Timeline

Jun 21, 2021Proposal created
Jun 21, 2021Proposal vote started
Jun 23, 2021Proposal vote ended
Oct 26, 2023Proposal updated