Create a “bb-f-usd” Fuse-boosted USD pool on Balancer, containing FEI, DAI, and LUSD.
Boosting will use FeiRari (fuse pool 8) to generate additional yield for liquidity providers.
Seed 16.67M FEI (minted), 16.67M DAI (pulled from Compound), 16.67M LUSD (pulled from B.AMM Liquity) from PCV to bootstrap the new bb-f-usd pool with 50M$ liquidity.
Context / Motivation
In december, Balancer released “boosted pools”, which are pools that re-allocate idle trading pool assets to productive yield sources, like what is done with some unborrowed tokens in Fuse, in order to increase liquidity provider’s returns.
Today, the only boosted pool live is the bb-a-USD (“balancer boosted in Aave USD tokens”) pool, which contains USDT/DAI/USDC tokens and allocate ~90% of the pool funds in Aave :
The re-allocation of idle LP funds to Aave increases the APR earned by Liquidity providers :
On the technical side, these “boosted pools” are pools of 3 pool tokens, where each of the 3 underlying pools are “linear pools” containing the naked asset (e.g. DAI) and the yield-generating asset (e.g. aDAI).
Balancer recently developped an ERC4626 Linear pool, that can “boost” an asset by depositing it in an ERC4626 yield vault.
Fei core team recently developped an ERC4626 vault wrapper around Fuse cTokens, meaning any token that can be deposited in a Fuse pool can have its own ERC4626 vault whose yield generation strategy is to deposit tokens in Fuse as a lender in a given pool.
This proposal is to create a boosted USD pool competing with bb-a-USD, made of decentralized stablecoins (FEI/DAI/LUSD instead of USDT/DAI/USDC), boosted in Fuse pool 8 (Fei Rari) instead of Aave, and bootstrap this pool using the Tribe DAO’s PCV.
Note that the funds deposited in this new bb-f-usd pool, in addition to providing liquidity, will be mostly re-deposited in FeiRari, so that will increase the available stablecoin liquidity to borrow there (and will increase the overall Fuse TVL)
- Create a FEI ERC4626 vault whose yield strategy is to deposit FEI as a lender in Fuse pool 8 (FeiRari)
- Create a DAI ERC4626 vault whose yield strategy is to deposit DAI as a lender in Fuse pool 8 (FeiRari)
- Create a LUSD ERC4626 vault whose yield strategy is to deposit LUSD as a lender in Fuse pool 8 (FeiRari)
- Create a bb-f-FEI Linear pool that uses the new FEI ERC4626 vault
- Create a bb-f-DAI Linear pool that uses the new DAI ERC4626 vault
- Create a bb-f-LUSD Linear pool that uses the new LUSD ERC4626 vault
- Create a bb-f-USD “boosted pool” containing bb-f-FEI, bb-f-DAI, bb-f-LUSD
- Deposit Tribe DAO’s PCV in this new boosted pool