Clearpool YTs as new yield sources for USDC and USDT BY

The following is an extract of the proposals posted on the Idle governance forum.

• Clearpool YTs as a new yield source for USDC BY - Portofino post
• Clearpool YTs as a new yield source for USDT BY - Fasanara post

Author

Treasury League

Summary

A proposal to add the Portofino Clearpool USDC Yield Tranches and the Fasanara Clearpool USDT Yield Tranches as new yield sources for the USDC and the USDT Best Yield strategies.

Background

After the recent exploit on Euler, Leagues have suggested to remove the Euler Yield Tranches from the basket of yield source of Best Yield strategies as a precautionary measure before a new audit is completed.

The current yield source of the Best Yield strategies would then be:

Strategy	Token	Underlying markets
Senior BY	DAI	Aave, Compound, Euler
Junior BY	DAI	Euler, Morpho

Proposal

These proposals aim to add new Clearpool Yield Tranches to the Best Yield strategies based on USDC and USDT:

1. Clearpool USDC (Portofino) YTs, with specs available on GitHub here
2. Clearpool USDT (Fasanara) YTs, with specs available on GitHub here

1. Portofino details

Portofino technologies is a high-frequency trading market maker that uses borrowed funds as trading capital, providing superior returns thanks to its advanced machine learning & stochastic control techniques.

Clearpool (Portofino) pool is live since early March. The Portofino pool has a size of ~$4.7m and a maximum borrowing capacity of up to $28m. Credora rates the borrower with an A.

Protocol	Borrower	Capacity	Pool size	Credora's rating
Clearpool	Portofino	$28,624,138	4,754,744	A

At the time of writing, the Portofino pool provides 10.99% APR with a 64% utilization rate (source).

Risk rating

Following the new version of the risk rating framework, the Clearpool (Portofino) Yield Tranches can be considered as a valid market to become a new yield source of the Best Yield strategies.

In order to trigger any BY deployment, the Yield Tranches will need to have at least a 30% coverage on Senior funds coming from the Junior counterparty.

2. Fasanara details

Fasanara Digital is a quantitative investment fund applying a scientific approach to investing in cryptoassets with the aim to achieve exceptional risk-adjusted returns for its investors.

Fasanara Digital was started in 2019 as part of Fasanara Capital, a 200 people London-based hedge fund founded in 2011 that specializes in alternative credit and fintech strategies. Overall, Fasanara Capital manages more than $4 billion across different funds.

With a team of 15 people fully dedicated to investments and development in digital assets, Fasanara Digital manages a delta-neutral high turnover fund specialized in market-making and arbitrage strategies. The fund trades approximately $10 billion per month in volume on both spot and derivatives on all major trading venues and has approximately $75 million in equity.

Clearpool (Fasanara) pool is live since the end of March. The Fasanara pool has a size of ~$1m and a maximum borrowing capacity of up to $40m. Credora rates the borrower with an AA.

Protocol	Borrower	Capacity	Pool size	Credora's rating
Clearpool	Portofino	$40,390,683	1,152,804	AA

At the time of writing, the Fasanara pool provides 14.25% APR with a 76% utilization rate (source).

Risk rating

Following the new version of the risk rating framework, the Clearpool (Fasanara) Yield Tranches can be considered as a valid market to become a new yield source of the Best Yield strategies.

In order to trigger any BY deployment, the Yield Tranches will need to have at least a 24% coverage on Senior funds coming from the Junior counterparty.