There a multiple strategies that we can build for leveraging certain assets but id like to create a protocol to lever any 4626 vault.
Ideally it should allow to onboard any 4626 vault and be permissionless but i can imagine that this wont work.
Otherwise we would create a system that still supports arbitrary 4626 vaults but the dao would onboard specific ones.
We should explore any kind of option here. Maybe we partner with Gearbox, Grail, Midas or other leverage/cdp/lending protocols. Maybe we build our own. So we could either ask gearbox or smth to add our vaults, maybe bring on our vaults as collateral on cdps or lending markets.
Either we build a CDP or a lending market which allows a user to deposit a vault as collateral and borrow a stable so you can loop it to achieve the desired leverage.
If we do a CDP we need to figure out how we create sufficient liquidity in Pools and for lending markets how we get enough TVL for borrowing. We could make a deal with stablecoin like FRAX or incentive normal users to deposit their stables.
Either way we need to figure out the following things:
How do we achieve sufficient liquidity for leveraging and selling the stable on open markets?
How do we keep peg?
How do we liquidate?
How do we check prices (oracles)?
Interest rates should be relatively low but mainly stable to allow for save leverage (if interest rates can explode easily that can liquidate positions all of a sudden)
At this stage its all open research. So prepare a document with different options and there pros and cons
RedVeil
commented
1 year ago
There a multiple strategies that we can build for leveraging certain assets but id like to create a protocol to lever any 4626 vault. Ideally it should allow to onboard any 4626 vault and be permissionless but i can imagine that this wont work. Otherwise we would create a system that still supports arbitrary 4626 vaults but the dao would onboard specific ones.
We should explore any kind of option here. Maybe we partner with Gearbox, Grail, Midas or other leverage/cdp/lending protocols. Maybe we build our own. So we could either ask gearbox or smth to add our vaults, maybe bring on our vaults as collateral on cdps or lending markets.
Either we build a CDP or a lending market which allows a user to deposit a vault as collateral and borrow a stable so you can loop it to achieve the desired leverage. If we do a CDP we need to figure out how we create sufficient liquidity in Pools and for lending markets how we get enough TVL for borrowing. We could make a deal with stablecoin like FRAX or incentive normal users to deposit their stables.
Either way we need to figure out the following things:
At this stage its all open research. So prepare a document with different options and there pros and cons