[GIP-19] V2 Discussion: Pools/assets and AllowedList Policy for V2

It’s not hard per se, but requires some work, e.g. testing to verify that our adapters work correctly with new pools (even seemingly similar contracts can have subtle differences that break the adapter). We don’t have capacity for that right now

Thanks @Van0k
Added tokens to the proposal draft. Can you please double check it and let me know if I missed something?
Do we also need to vote on the list of the contracts/adapters btw?

Thanks so much for clarification, I’m an idiot and messed up the yearn article.

Actually was re-reading intern’s article and noticed the: yVaults for USDC, DAI, and WBTC, and ETH… my question is WHY. The borrowing APY would always likely be higher than whatever historically those vaults have been earning. Those specific Yearn vaults were always very experimental (in my opinion) as they pack strategies from 5+ protocols at a time. I would not add yVault for USDC, DAI, ETH, and WBTC. No point.

I mostly agree, but it is not just for farming:

If you want to go long on BTC or ETH you can buy yvWETH or yvBTC on a USDC or DAI CA to approximately cover the borrowing fees.

If you want to go short you could use yvUSDC or yvDAI on a WBTC or WETH CA for the same reason.

Should be on the choice of the users imho. But well, I wouldn’t consider much of that either. yvDAI is ok, but the rest is clearly below <1% while adding extra gas and extra risk …

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Ah this is actually VERY interesting I didn’t think of that… damn!

LGTM, I would also mention that LDO and LQTY have no USD oracles and will always be price at zero (but are still tracked by Gearbox so they can be sold or sent to user on account closing)

@amantay I see yvCurve-stETH has higher LTs than steCRV for all but 1 one pool? I would’ve expected them to be the same?

@quantern,
my bad. Thanks for the catch! Will change

Updated the list of pools/tokens.
Thank you fellow gearheads!

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Proposing to add wrapped Coinbase staked ETH (address 0xBe9895146f7AF43049ca1c1AE358B0541Ea49704) to the tokens AllowedList for Gearbox v2.

Coinbase is one of the most credible and trustworthy custodians who recently launched their liquid ETH staking derivative token that can be freely traded on-chain (currently at a discount of c. 5% to ETH). A number of strategies relevant for Lido’s staked ETH derivative, stETH, have been extensively discussed and marketed externally; most of these strategies, incl leveraged staking, appear similarly relevant to competing products.

This proposal assumes that the idiosyncratic risks associated with the token contract (contract upgradeability, pausing and blacklisting enabled) are manageable; the LTV thresholds could, for example, be set to more conservative levels to account for this higher degree of centralization and counterparty risks.

Actually, ye! But does it made sense to have it as an asset to trade into, if the farms / pools for it have not been made & audited yet? What do you foresee as strategies, indirect leveraged staking only?

from my point of view the main problem here is in low on-chain liquidity of cbETH. so in the case of depeg it can be stuck as bad debt…

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Mr. @RV_ivangbi is soliciting input regarding using $CVX, $CRV $FXS etc. as collateral in his latest tweet storm so thought I’d throw my 2 cents in.

Would I use $MKR $LDO $CVX $FXS $SNX $SUSHI $YFI $COMP $CRV as collateral and lever up? Well, it depends on what I’m borrowing. If I’m borrowing ETH or wBTC; No. Exposure to two volatile assets at high leverage isn’t a risk I’m comfortable with. USDC; maybe, but only at low leverage, i.e. 2 or 3x max but only if there was high yielding stablecoin pools available at that low lev. If pools were < 10% APR then factoring in tx fees etc and risk, probably not.

However, if it was possible to borrow the same asset used as collateral, i.e. deposit CRV and borrow CRV at 4-6x then yes; certainly would use this. I’d be throwing the CRV into the cvxCRV pool (if it was whitelisted of course) and FXS in the cvxFXS pools etc. etc.

My opinions on each as a form of collateral:
$MKR - Don’t own any, nor intend to. Nil interest in it as collateral.
$LDO - Don’t own any, nor intend to. Nil interest in it as collateral.
$CVX - Own reasonable amount but it needs to be put to work. If returns can be > than bribes etc. then LFG.
$FXS - As above.
$SNX - Don’t own. Nil interest.
$SUSHI - This is nearly dead, no? I believed but was burned. No return to the sushi-fam unless there’s real change (and can the new fella do it? I don’t know; we’ll see). No interest.
$YFI - Don’t own. No interest as collateral.
$COMP - As above.
$CRV - Own but use in Gearbox needs to beat bribs and LP-ing returns and make up for potential opportunity of CRV for use in minting $crvUSD (if it’s in fact needed?).

Appreciating or value-deriving tokens would be better forms of collateral so whilst they remain volatile they’re trending in the right direction, i.e. up.

Just my thoughts.

2 Likes

Been discussing with @0xmikko and @apeir99n the topic last few days and we decided to make some minor changes. I cannot seem to edit my previous posts for some reason, so, below is the last updated version for the upcoming proposal. The changes are - wstETH pool instead of stETH, due to wrapped version is more applicable for integration and minor changes of some of the LTs:


Motivation

Gearbox V2 has passed external audits and is about ready for deployment on Mainnet.

V2 includes integrations with Lido, Curve, Convex, and Yearn protocols and allows new leveraged strategies for high-yield farming and trading. Those protocols have well-established processes, reliable infrastructure as well as strong community support.

The V2 strategies involve assets that can be leveraged using Curve, Convex, and Yearn:

Token Address
yvUSDC 0xa354F35829Ae975e850e23e9615b11Da1B3dC4DE
yvDAI 0xdA816459F1AB5631232FE5e97a05BBBb94970c95
yvWETH 0xa258C4606Ca8206D8aA700cE2143D7db854D168c
yvWBTC 0xA696a63cc78DfFa1a63E9E50587C197387FF6C7E
yvCurve-stETH 0xdCD90C7f6324cfa40d7169ef80b12031770B4325
yvCurve-FRAX 0xB4AdA607B9d6b2c9Ee07A275e9616B84AC560139
steCRV 0x06325440D014e39736583c165C2963BA99fAf14E
cvxsteCRV 0x9518c9063eB0262D791f38d8d6Eb0aca33c63ed0
stkcvxsteCRV 0x2210aa245Bf766eE99325c607807A08e636B5173
FRAX3CRV-f 0xd632f22692FaC7611d2AA1C0D552930D43CAEd3B
cvxFRAX3CRV-f 0xbE0F6478E0E4894CFb14f32855603A083A57c7dA
stkcvxFRAX3CRV-f 0x2AF29502110080081FDF726dfBf61ABE3bA9Ef3C
3Crv 0x6c3F90f043a72FA612cbac8115EE7e52BDe6E490
cvx3Crv 0x30D9410ED1D5DA1F6C8391af5338C93ab8d4035C
stkcvx3Crv 0x2eD0f32d7C8b0f7EA7E40277C62Fb9C5DE092003
LUSD3CRV-f 0xEd279fDD11cA84bEef15AF5D39BB4d4bEE23F0cA
cvxLUSD3CRV-f 0xFB9B2f06FDb404Fd3E2278E9A9edc8f252F273d0
stkcvxLUSD3CRV-f 0x77e6290D1779B606235407fdf37A14D94D0DFB40
crvPlain3andSUSD 0xC25a3A3b969415c80451098fa907EC722572917F
cvxcrvPlain3andSUSD 0x11D200ef1409cecA8D6d23e6496550f707772F11
stkcvxcrvPlain3andSUSD 0xd622AD90386BBf0310668175f76eD958030E3635
gusd3CRV 0xD2967f45c4f384DEEa880F807Be904762a3DeA07
cvxgusd3CRV 0x15c2471ef46Fa721990730cfa526BcFb45574576
stkcvxgusd3CRV 0x074f66aE6e28f7e01DFe598ECbfbd3034cf3De47
sUSD 0x57Ab1ec28D129707052df4dF418D58a2D46d5f51
FRAX 0x853d955aCEf822Db058eb8505911ED77F175b99e
gUSD 0x056Fd409E1d7A124BD7017459dFEa2F387b6d5Cd
LUSD 0x5f98805A4E8be255a32880FDeC7F6728C6568bA0
stETH 0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84
CRV 0xD533a949740bb3306d119CC777fa900bA034cd52
CVX 0x4e3FBD56CD56c3e72c1403e103b45Db9da5B9D2B
FXS 0x3432B6A60D23Ca0dFCa7761B7ab56459D9C964D0
LDO 0x5A98FcBEA516Cf06857215779Fd812CA3beF1B32
SNX 0xC011a73ee8576Fb46F5E1c5751cA3B9Fe0af2a6F
LQTY 0x6DEA81C8171D0bA574754EF6F8b412F2Ed88c54D

All of the assets conform to main risk requirements: deep DEX liquidity, the existence of Chainlink price-feed for underlying tokens, and a viable tokenomic model.

DEX Liquidity can be tracked using the risk-committee report: Gearbox Credit Accounts

Chainlink price-feeds: Decentralized Data Feeds | Chainlink

To mitigate the risks of malicious exploitation, V2 will be gated on the first phase using the set of whitelisted addresses (Leverage Ninja mode). To bootstrap TVL, whitelisted participants have committed to a minimum $50k entry.

Given V2 is around the corner with a tentative ETA soon after the Merge, it’s crucial to consider all the associated risks and decide on the Allowed List policy for V2. The new parameters aim to give greater leverage ability for the less risky collateral assets as well as to reduce leverage for the more risky ones.

Proposal

Taking into account V1 experience and expectations from the upcoming V2, I propose changes as below:

  1. Create a new pool: wstETH 0x7f39C581F595B53c5cb19bD0b3f8dA6c935E2Ca0 with the same parameters as for the ETH pool. This would help to attract liquidity from stETH holders and also allow less risky sTETH borrowing and bigger leverage when using stETH as collateral.

The pool parameters have to be adjusted to satisfy the expected demand during gated Leverage Ninja mode.

  1. Set up Asset LTs as below for V2 assets:
Token USDC pool (%) DAI pool (%) WETH pool (%) wstETH pool (%) WBTC pool (%)
WETH 85 85 94.5 90 85
stETH 82.5 82.5 90 94.5 82.5
WBTC 85 85 85 85 94.5
USDC 94.5 92 82.5 82.5 82.5
DAI 92 94.5 82.5 82.5 82.5
USDT 90 90 82.5 82.5 82.5
sUSD 90 90 82.5 82.5 82.5
FRAX 90 90 82.5 82.5 82.5
gUSD 90 90 82.5 82.5 82.5
LUSD 90 90 82.5 82.5 82.5
steCRV 82.5 82.5 90 90 82.5
cvxsteCRV 82.5 82.5 90 90 82.5
stkcvxsteCRV 82.5 82.5 90 90 82.5
FRAX3CRV-f 90 90 80 80 80
cvxFRAX3CRV-f 90 90 80 80 80
stkcvxFRAX3CRV 90 90 80 80 80
3Crv 90 90 80 80 80
cvx3Crv 90 90 80 80 80
stkcvx3Crv 90 90 80 80 80
LUSD3CRV-f 90 90 80 80 80
cvxLUSD3CRV-f 90 90 80 80 80
stkcvxLUSD3CRV 90 90 80 80 80
crvPlain3andSUSD 90 90 80 80 80
cvxcrvPlain3andSUSD 90 90 80 80 80
stkcvxcrvPlain3andSUSD 90 90 80 80 80
gusd3CRV 90 90 80 80 80
cvxgusd3CRV 90 90 80 80 80
stkcvxgusd3CRV 90 90 80 80 80
FraxUsdc 90 90 80 80 80
yvDAI 90 90 80 80 80
yvUSDC 90 90 80 80 80
yvWETH 82.5 82.5 90 90 80
yvWBTC 82.5 82.5 80 80 90
yvCurve-stETH 82.5 82.5 90 90 82.5
yvCurve-FRAX 90 90 80 80 80
CVX 25 25 25 25 25
FXS 25 25 25 25 25
LQTY 0 0 0 0 0
CRV 25 25 25 25 25
LDO 0 0 0 0 0
SNX 25 25 25 25 25

LTs (Liquidation thresholds) above address the demand for higher leverage on base assets and stablecoins and reflect the absence of interest on the majority of the tokens in V1 so far. It is expected that CVX, FXS, LQTY, CRV, LDO, and SNX would be used as farming rewards rather than leveraging trading on them, therefore high LT values are unnecessary. This can be reconsidered later if there will be proven demand for higher leverage.

good,v2 will come,i am very happy

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@amantay seems you missing FraxUsdc pool’s (both for Curve and Convex) address in the 1st table list…

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https://snapshot.org/#/gearbox.eth/proposal/0x8c4f12386566db3126803491f6e820bb6b23886238c9ef304851964e16c1b078