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Clearpool YTs as a new yield source for USDC BY - Fasanara

Voting ended almost 3 years agoSucceeded

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

Summary

A proposal to add the Fasanara Clearpool USDC Yield Tranche as a new yield source for the USDC Best Yield strategies.

References

Proposal

After the successful integration of the Clearpool Fasanara USDT YTs, this new proposal aims to add one new Clearpool Yield Tranche to the Best Yield strategies based on USDC:

Clearpool USDC (Fasanara) YTs, with specs available on GitHub here

Similar to previous Clearpool's integration, Fasanara one would benefit doubly the Idle users

By integrating Clearpool USDC (Senior) tranches as a new yield source for the USDC BY strategy, we can create a two-side benefit for the Idle protocol:

The USDC BY strategy can add a new yield source, besides the usual Aave and Compound, able to offer an average APY in the 5% to 10% range. Currently, Aave and Compound offer APYs lower than 1%. This significant increase in yield can benefit current BY LPs and attract new users to the protocol.

The USDC BY funds flowing to the Senior side of Clearpool PYTs can create a stable source of funding for the Senior tranches and consequently incentive new Junior liquidity deployments thanks to the boosted APYs available (with an expected average APY in the range of 10% to 20%).

Yield Tranches are live since December 2021 holding a cumulative TVL of up to $50m.

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 beginning of June. The Fasanara pool has a size of ~$500k 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	$346,295	AA

At the time of writing, the Fasanara pool provides 29.43% APR with a 79% utilization rate (source).

Risk rating

The borrower has been already analysed internally following 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.

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Clearpool YTs as a new yield source for USDC BY - Fasanara

Timeline

Jun 07, 2023Proposal created

Jun 07, 2023Proposal vote started

Jun 10, 2023Proposal vote ended

Oct 26, 2023Proposal updated

Proposal

After the successful integration of the Clearpool Fasanara USDT YTs, this new proposal aims to add one new Clearpool Yield Tranche to the Best Yield strategies based on USDC:

Similar to previous Clearpool's integration, Fasanara one would benefit doubly the Idle users

By integrating Clearpool USDC (Senior) tranches as a new yield source for the USDC BY strategy, we can create a two-side benefit for the Idle protocol:

The USDC BY strategy can add a new yield source, besides the usual Aave and Compound, able to offer an average APY in the 5% to 10% range. Currently, Aave and Compound offer APYs lower than 1%. This significant increase in yield can benefit current BY LPs and attract new users to the protocol.
The USDC BY funds flowing to the Senior side of Clearpool PYTs can create a stable source of funding for the Senior tranches and consequently incentive new Junior liquidity deployments thanks to the boosted APYs available (with an expected average APY in the range of 10% to 20%).

Yield Tranches are live since December 2021 holding a cumulative TVL of up to $50m.

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 beginning of June. The Fasanara pool has a size of ~$500k 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

$346,295

At the time of writing, the Fasanara pool provides 29.43% APR with a 79% utilization rate (source).

Risk rating

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.