Proposal: Raise collateral factor of new yVault tokens to 75%

Summary

This proposal would increase the collateral factor of yvCurve-IronBank, yvCurve-sETH, and yvCurve-stETH to 75%.

Motivation

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.

Background

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).

For
Increase collateral factor of yvCurve-IronBank, yvCurve-sETH, and yvCurve-stETH to 75%.

Against
Do nothing.

7 Likes

Im for and im ready to vote <3

2 Likes

Can’t wait to see that!

2 Likes

Let’s go for it! Composability FTW!

1 Like

I’ll supply liquidity when this is done, fast!

1 Like

When will the voting start?

2 Likes

Yes please. Time sensitive positions are out there. :wink:

After discussion with @dudesahn, we decided to put up the voting with 60%

The major reason is that these are tokens that wrapped 2 or 3 times, which are very difficult for liquidation, even though the underlying tokens are major or stable tokens.

Difficulty in liquidation is directly linked to the protocol risk. Thus, we think 60% is a proper number.

The voting will start soon:
https://vote.cream.finance/#/cream-finance.eth/proposal/QmWEHDn7bqXoMNh88i5MTxHa2MQ4g9pbAa9h2QUpu2DrZj