This proposal would increase the collateral factor of yvCurve-IronBank, yvCurve-sETH, and yvCurve-stETH to 75%.
As detailed in this proposal, there are plans to add several of Yearn’s v2 yVault tokens to C.R.E.A.M. v1. As the first three of these assets have now gone live for borrowing and lending, the next logical step is to allow users to collateralize their vault tokens and borrow against them. This will bring greater TVL to C.R.E.A.M. and also drive borrowing demand, increasing returns to depositors and to the protocol itself.
C.R.E.A.M. currently has two v1 yVault tokens listed as collateral—yUSD and yETH, both listed at 75% collateral ratio. Thus, this proposal matches the current standard by allowing 75% collateral ratio, and also recognizes the stability of assets denominated in USD and ETH that are also yield-bearing. Furthermore, this proposal acts in continuation of the previously announced merger between C.R.E.A.M. and Yearn and the milestones that were outlined.
Yearn Finance is an aggregator service for decentralized finance (DeFi) investors, using automation to allow them to maximize profits from yield farming. Yearn is currently the 2nd largest yield protocol (in TVL ranking - source: Defi Llama) and the 15th largest DeFi protocol overall (in TVL ranking - source: Defi Llama).
Increase collateral factor of yvCurve-IronBank, yvCurve-sETH, and yvCurve-stETH to 75%.