FEI <> Galleon collaboration

Proposals
1

Hello all, Tribe members.

I’m @duck_0x, core contributor to Galleon DAO, an Asset Management Methodologists Guild (part of the set ecosystem). Today we’re launching our second collaborative product with Beverage Finance on mainnet: The ETH Max Yield Index ($ETHMAXY). The index gives a 3x+ levered position exposure on ETH (by utilizing both stETH from Lido and Aave collateral/borrowing services) and provides a 13-15% APY.

Since the $ETHMAXY Index is paired vs ETH on uniswap the risk of liquidation is almost non-existent (and in the unlikely scenario that stETH should significantly unpeg from ETH, we have controls in place to mitigate this.)

Understanding the methodology:

The Ethereum Max Yield Index follows a strict methodology, it is composed of stETH, deposited as collateral, allowing ETH to be borrowed and wrapped into stETH — this process is repeated until the token is 3x+ levered. Aave LTV for stETH is 70% and liquidation is at 75% which means stETH can be looped 3.33x — 4x.

Details on the product:

  • Underlying Asset: stETH (collateral), ETH (debt asset).
  • Rebalance Interval: No fixed interval. The product will be rebalanced if the leverage ratio falls due to stETH APY accrued.
  • Streaming Fee: 1.95%

ETHMAXY Issuance, Staking & Rewards Program

Liquidity Rewards

→ At $1M liquidity — 80% APR

→ At $5M liquidity — 16% APR

→ ~$66,000/m in rewards at current, sub $5M market valuations for both $DBL & $DRINK

We will also be running dual incentives with BeverageFinance for $ETHMAXY where you can earn Galleon’s governance token $DBL (from 14/03/2022) and Beverage’s governance token $DRINK (from launch).

Currently, we’re reaching out to DAOs who might be interested in Treasury Diversification, as we feel the ETH Max Yield Index is ideal for this whether you’re bullish on ETH long term or not, the 13-15% APY is very lucrative. Additionally, as a small incentive on top of our LP rewards Galleon will cover gas fees incurred by FEI of the minted position for LPing.

If this is of interest, we would love to hear from the DAO, our community discord is on our webpage. Alternatively, you can reach out to me directly on discord: Duck_0x#0001.

If you can see any other way galleon<>FEI could explore collaboration around the ETH Max Yield Index, we would be very keen to hear any ideas as we love what FEI do in the space.

Thanks and kind regards,

Duck

2 Likes
2

One potential interesting collaboration could be including the Tribe ETH Fuse pool (#146) in the strategies for the ETHMAXY product. This pool allows leverage on wstETH similar to Aave, but it’s on Fuse (a Tribe DAO product). It’s also an isolated pool, which gives it significantly more security than Aave.

3

thanks for your reply @Fishy the only sticking point here is ETHMAXY is created via Set Protocol Infrastructure which currently doesn’t have integration with Fuse (we are exploring this internally) but until that changes our product is live and it works well, so well in fact we’ve seen a number of competitors rushing to spin up similar products.

Regardless of the competition the ETH Max Yield Index is the most lucrative product for earning yield on your ETH in the market (23%+ APY with our current liquidity incentives).

4

Fuse is a fork of Compound, so Set Protocol should be able to work with Fuse :slight_smile:

1 Like