[IIP-26] Add senior tranche of cpWIN-USDC PYT as new yield source for idleUSDC Best Yield

Authors

Treasury League and Development League

Summary

This proposal focus on one initiative:

• Clearpool PYTs as a new yield source for BY

Rationale

For a comprehensive analysis of the initiative, we suggest visiting the dedicated governance forum post linked below:

• Clearpool PYTs as a new yield source for BY → Forum post

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%).

Perpetual Yield Tranches are live since December 2021 holding a cumulative TVL of up to $50m. Clearpool (Wintermute) pool 1 is open since May 2022 and it has been part of the PYTs offering since July 2022. The USDC Wintermute pool has a size of $18m with an average utilization rate of 85%. Wintermute has a borrowing capacity on Clearpool of up to $760m.

Specifications

The code for the IIP-26 can be found here.

IIP-26 actions:

• Add Senior tranche of cpWIN-USDC PYT as a new yield source for idleUSDC Best Yield strategy

Together with the above action, IIP-26 will set a new wrapper contract for the Clearpool USDC pool: 0xdb1b149177b5819cf467ad6519cf55416789300a