Summary:
This pool uses the new composable stable pool factory which allows us to apply the protocol fee to yield bearing tokens. bb-rf-aUSDC is
Beets Reaper Aave Boosted USDC, which means we’re using a linear pool to deposit USDC into a Reaper USDC Vault which only deposits into Aave. Reaper handles the autocompounding of any OP rewards which adds additional yield. For reference, Reaper is a fork of Yearn v2 run by the Byte Masons who are talented developers in their own right. BeethovenX has a close working relationship with the Byte Masons. In the absence of an Aave v3 compatible atoken wrapper this arrangement represents the best path forward, and arguably it’s better than using a wrapper since we get the additional compounding benefit. The kind of vault we’re using has held 9 figures of TVL and been thoroughly battle tested so it should add a negligible risk premium.bb-rf-aUSDT represents boosted USDT, and bb-rf-aDAI represents boosted DAI.
References/Useful links:
Link to:
• Website
• Documentation
• Github Page
• Communities
Protocol Description:
USDC is the dollar backed stablecoin issued by Circle. DAI is the decentralized overcollateralized stablecoin by MakerDAO. USDT is the dollar backed stablecoin issued by Tether.
Motivation:
This Aave boosted 3pool will form the cornerstone of our USD stable liquidity on Optimism. The boosted APR currently stands at 3.78% which means there is quite high intrinsic yield to this pool that will persist even without our token incentives. Note that this is after our 50% yield fee so this is very lucrative liquidity to have. Our friends at Qi DAO are the first to co-incentivize MAI/bb-rf-aUSD and we hope to secure more partnerships like this to build around the high base yield of this pool.
Specifications:
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Governance: Find more information about MarkerDAO governance here. USDC and USDT are centralized and don’t have governance.
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Oracles: This pool only relies on the rate providers of the linear pools to inform when yield is earned.
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Audits: See here.
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Centralization vectors: There are centralization risks with USDC, DAI, and USDT, though the market has clearly accepted those as minor for now.
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Market History: See here.
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Value: We will earn the protocol fee on bb-rf-aUSD yield, plus trading fees. As a reminder, protocol fees on Optimism are split 50% to Balancer (passively to DAO & veBAL) and 50% to BeethovenX. Of BeethovenX’s 50%, half is returned as incentives on Optimism pools either via bribes or direct LM. The other half is split between funding the team and accumulating veBAL/auraBAL/vlAURA per this recent proposal. Thus emissions towards this gauge both benefit passive veBAL and serve to help our flywheel accelerate our growth on Optimism.
Link to pool
Link to gauge: 0x8B815a11D0D9eeeE6861D1C5510d6FAA2C6e3fEb