Contingent convertibles (CoCo) powered yield aggregator using protocol owned liquidity (PoL) to drive emissions token liquidity & price to attract and retain capital
https://docs.google.com/presentation/d/1hUvnrspoC9W2PsPQGgaYNt8YxwsrELGX3ukmd6QEnNg/edit?usp=sharing Contingent convertibles allow users to stake shares for yield, similar to OHM bonds, with the caveat of only being able to convert back in specific scenarios. In our case, we seize some yield in case of adverse price action. Yearn + OHM forks. Yield aggregators and other protocols can attract more capital by offering emissions tokens on top. Mercenary capital tends to drive the value of these tokens to 0 very rapidly. We fix this by: 1. layering on protocol owned liquidity. To drive emissions token price and liquidity 2. CRV style gauges to allow users to add emissions to new community selected farms Users can bond the emissions token, and LP, alongside yield aggregator supported stable & long tail assets to generate Olympus style bonds. These bonds can then be staked to generate Contingent convertibles (CoCos). These CoCos can be unstaked with a reflection style reduction if the price of the token is lower than a floor calculated as (Weekly moving average < monthly moving average). Or unstaked with no reflections if the price is trending upwards. Yield aggregator profits are also routed to CoCo holders as a stable income, and likewise confiscated in case of unbonding at low prices. Since OHM & forks suffer from massive price volatility, the enhanced risk using CoCos and reflection on unstaking should maintain elevated APYs with positive buy pressure. With a novel use case of earning stable yields on top of the token value increase making it more attractive and reducing the need for users to sell. This way we can also appeal to the whole spectrum of yield farmers without being killed by mercenary capital. Everything from stable coin / eth stakers, to algo ponzi enjoyers.
How it's made
Yield aggregator : - React - Vyper vault and registry contracts - Solidity strategies. - Keeper - (calls harvest to auto compound) - Uses Gelato with a dynamic resolver with a backup time period resolver - Yield source - uses AAVE vaults with leverage, borrowing max LTV and depositing it back. - WIP Curve 3 pool strat, balancer strat, iron finance strat - contracts have been launched on matic Protocol Owned Liqudity and CoCos: - Uses Olympus contracts and forked UI - Also using React - Current mechanism design just has an offchain epoch based calculation of contingency, written out to a bool based Oracle which delivers a 50% tax on unstaking - Contracts are live on rinkeby. UI is not currently being hosted Details: - Gelato Task ID - dynamic 0x1f5f33673ecf6b43f078422bf60a9b6ede602cea25b950c4ecdeda0f52d40634 - backup 0xddd09f69023d76b9b5748144edda1f7e7a0b81bbb6e13aeff615faa9002fff05