[IIP-32] Euler staking DAI PYTs as a new yield source for BY

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

Authors

Treasury League and Development League

Summary

This proposal focuses on one initiative

• Euler staking DAI PYTs as a new yield source for BY

Rationale

Euler staking DAI PYTs as a new yield source for BY

For a comprehensive analysis of the initiatives and a background on Euler, we suggest visiting the related governance post.

The DAO already voted to upgrade the yield sources of the USDC, USDT and WETH Best Yield vaults (implemented through [IIP-31]). The temperature checks to add the Euler staking DAI PYTs market have also been positive.

Today we want to continue the discussion on the last missing stablecoin piece to join the Best Yield aggregation layer:

• The Euler staking PYTs for the DAI market, with specs available on GitHub here

Similar to previous integrations into BY, the Euler staking DAI one will benefit doubly the Idle ecosystem

• Increase BY’s returns for the DAI vault.
• Add a stable source of funding to the Euler staking Senior tranches and consequently incentivize the onboarding of new Junior liquidity.

Currently, the Euler DAO is discussing to extend the duration of the EUL incentives distribution indefinitely to its staking markets with the following specs:

Token	EUL distribution
eWETH	9,000 per epoch
eUSDC	5,000 per epoch
eUSDT	1,000 per epoch
The Euler DAI staking PYTs will benefit from the Peg Stability Model (PSM) of Maker DAO to swap 1:1 DAI to USDC and enjoy indirectly the staking rewards distributed by Euler DAO.

We will then add the Senior tranches of Euler staking DAI PYTs as new yield sources for the idleDAI Best Yield vaults.

Specifications

The code for the IIP-32 can be found on GitHub here and consists of one action.

IIP-32 actions:

• 1 action to add the Euler staking wrappers to the idleDAI vault.

Where the Euler staking (Senior) PYTs wrapper address is:

• Euler staking DAI AA PYTs 0xC9C83bEBd31aff93a2353920F2513D372847A517