Vote 18: Gro protocol strategy selection whitelist 2

Background and summary

  • The DAO whitelisted 6 strategies in May 2022 for Gro protocol to use
  • Proposal for the DAO to consider further strategies for whitelist, such that they can be added to the strategy mix
  • Funds continue to be allocated in accordance with the existing framework of (1) pool depth and (2) yield, as set out in the Gro protocol docs

Vote 018: Whitelist selected Convex strategies for use in Gro protocol

Gro protocol has been designed to primarily use Convex pool strategies following Gro DAO Vote 009. These strategies pair 3CRV with a different stablecoin (except the 3CRV pool itself which just has DAI, USDC and USDT), meaning each has full exposure to each of the 3CRV assets plus whichever stablecoin is also in the pool.

Prior to the introduction of Convex strategies, Gro protocol successfully used two lending strategies without any issues: Aave and Leveraged Compound. These have not yet been formally whitelisted by the DAO.

Proposal that Gro DAO approves the following strategies as yield strategies for the protocol to use (each one with 50% max Vault exposure):

  1. GUSD-3CRV (Convex strategy)
  2. 3CRV (Convex strategy)
  3. Aave (Lending strategy)
  4. Leveraged Compound (Leveraged lending strategy)

Strategy 1: GUSD-3CRV

  • Created by Gemini and backed 1:1 with real-world USD
  • Gemini is a U.S. company regulated as a limited purpose trust company by the New York State Department of Financial Services.
  • There are no fees to buy or sell GUSD with U.S. dollars on the Gemini Exchange.
  • Audits of the GUSD reserve are published monthly by an independent registered accounting firm, BPM LLP
  • The Ethereum smart contract has been audited by Trail of Bits, a leading information security research and development firm
  • There is currently 166m GUSD in circulation
  • Live since 2018 Sept
  • Link to pool: Curve.fi (pool depth: $28m as at 25th July)
  • Current Convex yield 5.06% (as at 25th July)

Strategy 2: 3CRV

  • Created by Curve and with the same inherent risks as any of the existing 3CRV strategies, minus the risk of the additional ‘exotic’ stablecoin
  • Curve has been live for 30 months with a DeFi Safety score of 93% and TVL of $5.94bn
  • Link to pool: Curve.fi (pool depth: $1bn as at 25th July)
  • Current Convex yield 1.22% (as at 25th July)

Strategy 3: Aave lending (USDC, USDT and/or DAI)

  • Aave protocol is a non-custodial protocol for liquidity providers and borrowers, it primarily facilitates lending and borrowing activity
  • Aave has been live for 63 months with a DeFi Safety score of 96% and TVL of $6.19bn
  • Aave has been audited by OpenZeppelin, Trail of Bits and Peckshield
  • Link to app: Aave
  • Current USDC, USDT, DAI yields: 0.51% - 1.66% (as at 25th July)

Strategy 4: Leveraged Compound lending (USDC, USDT and/or DAI)

  • Compound protocol is a non-custodial protocol for liquidity providers and borrowers, it primarily facilitates lending and borrowing activity
  • Compound has been live for 28 months with a DeFi Safety score of 93% and TVL of $2.8bn
  • Compound has been audited by OpenZeppelin and Trail of Bits
  • Link to app: Compound
  • Current USDC, USDT, DAI un-leveraged yields: 0.62% - 1.83% (leveraged yields expected to be higher)

Next steps

The vote will start on https://vote.gro.xyz today and run for 3 days.

Future strategies can be suggested and voted on by the DAO, and at any time community members can also propose a removal of a strategy from the current whitelist.

1 Like

Would Strategy 4 be like for like e.g. supply USDC, borrow USDC and fold?

Exactly that :ok_hand:

It’s based on the original Yearn strategy that does as you describe.

Let us know if you’ve got any more questions!