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

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

Summary

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

References

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

Proposal

After the successful integration of multiple Clearpool YTs in the USDC and USDT markets, this new proposal aims to add the latest Clearpool Yield Tranche to the Best Yield USDC vaults:

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

Similar to previous Clearpool's integration, Wincent's 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:

1. 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.
2. 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.

Wincent details

Wincent is a leading crypto market maker with $3B+ daily volume and 300K+ daily transactions.

Since 2018, Wincent develops software for algorithmic trading and market analysis. Our true edge lies in our talented team with experience from Google, Facebook, academia, data science, competitive programming, math and physics competitions (IOI, IMO, IPhO, ACM ICPC), sports betting and poker. Our algorithms trade $300 million – $3.5 billion daily on the top cryptocurrency exchanges worldwide 24/7/365.

Clearpool (Wincent) pool is live since the beginning of September. The Wincent pool has a maximum borrowing capacity of up to $27m. Credora rates the borrower with a BB.

Protocol	Borrower	Capacity	Pool size	Credora's rating
Clearpool	Wincent	$27,000,000	$ -	BB

At the time of writing, the Wincent pool has been deployed and will soon start the borrowing activities.

Risk rating

The borrower has been already analysed internally following the risk rating framework. The Clearpool (Wincent) Yield Tranches can be considered as a valid market to become a new yield source of the Best Yield vaults.

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.