RIP #22 - Treasury Yield Optimization

Since RIP #18, wAVAX rewards have ended on the treasury's curve deposits and the broader market has continued in a significant downtrend, resulting in large decreases in the treasury's current yield (~2-4% APY).

This RIP's purpose is to reassess our options for yield farming with the current treasury deposit in curve. I've put together 5 options on a scale of yield potential and general risk for the DAO to evaluate and vote on.

If Option 1: Curve (No Change) has the most votes, no action will be taken.

If any of the other options have the most votes, a follow up RIP will be posted to determine how to split the treasury between the two options with the most votes (100-0, 75-25, 50-50, etc).

Additional RIPs may be needed depending on options voted for (Treasury management for Yeti, USDC vs YUSD for single sided staking, etc).

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Option 1: Curve (No change) - Aave 3pool - https://avax.curve.fi/aave

As wAVAX rewards have ended on curve, this is currently the lowest yield of the available options, at approximately 2-4% APY. However, curve is one of the most reliable blue-chip defi platforms in all of crypto, ranking top 5 in TVL, covering 10 different chains.

The stables we are exposed to in the Curve options are Aave interest bearing versions of USDT, USDC, and DAI. Yield is generated in LP fees and CRV rewards.

Potential Monthly Yield: $3,500

Protocol Exposure: Aave, Curve Security: https://curve.fi/risks https://curve.fi/audits

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Option 2: Aave - USDT Supply - https://app.aave.com/reserve-overview/?underlyingAsset=0x9702230a8ea53601f5cd2dc00fdbc13d4df4a8c7&marketName=proto_avalanche_v3

Aave presents what appears to be a significant upgrade in yield, in addition to lowering exposure to multiple platforms and stable coins. The approximate APY is 5-7%. Aave is also right up there with Curve as a blue-chip defi platform, ranking top 5 in TVL and covering 3 chains.

The stable we are exposed to in the Aave option is USDT. Yield is generated in borrowing fees and wAVAX rewards.

Potential Monthly Yield: $7,000

Protocol Exposure: Aave Security: https://docs.aave.com/developers/security-and-audits

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Option 3: Platypus - Single Sided USDC or YUSD - https://app.platypus.finance/pool?pool_group=alt

This is where we dive into AVAX native protocols with higher potential yields. Platypus has established itself as one of the largest liquidity providers for stable coins on AVAX with approximately $600m TVL, ranking #2 on AVAX under Aave and above Curve. The approximate yield is 11-13% APY for USDC, 13-15% for YUSD.

The stables we are exposed to in the Platypus option are USDC or YUSD. Yield is generated in YETI and PTP rewards.

Potential Monthly Yield: $13,000 - $15,000

Protocol Exposure: Platypus, Yeti Security: https://platypus.finance/ https://docs.platypus.finance/platypus-finance-docs/

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Option 4: Vector Finance - Single Sided USDC or YUSD - https://vectorfinance.io/stake

Vector Finance is a yield aggregator/booster for Platypus and Trader Joe. Being the largest holder of PTP and it's locked token vePTP, it provides the greatest yields for PTP rewards on Platypus deposits along with additional VTX rewards. Vector has been whitelisted by Platypus as a platform and has also been audited by the same company that audited platypus, Omniscia. The approximate yield is 13-15% APY for USDC, 15-17% for YUSD.

The stables we are exposed to in the Vector option are USDC or YUSD. Yield is generated in YETI, PTP, and VTX rewards.

Potential Monthly Yield: $15,000 - $17,500

Protocol Exposure: Vector, Platypus, Yeti Security: https://docs.vectorfinance.io/vector-protocol/risk-prevention/audit

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Option 5: Yeti - YUSD Stability Pool - https://app.yeti.finance/#/farm

Yeti is a borrowing/lending protocol with a native over-collateralized stable coin, YUSD. Yeti has established itself as the #1 AVAX native borrowing platform with $450m TVL, surpassing benqi and rivaling Aave. The YUSD pools on Curve and Platypus also have the highest TVLs of any other pool.

The approximate yield is 16% APY, however, the stability pool is used to liquidate positions on the Yeti platform, meaning that YUSD is then paid out from the pool and the depositors are rewarded with the liquidated tokens, totaling an average of 10% more value than the YUSD cost. This can take the approximate yield to levels above 20% APY with market volatility. This requires active treasury management however to manage liquidated rewards.

The stable we are exposed to in the Yeti option is YUSD. Yield is generated in YETI and various liquidated tokens.

Potential Monthly Yield: $18,500+

Protocol Exposure: Yeti Security: https://docs.yeti.finance/other/audits

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