Request for Feedback: Proposed yoUSD / RLP Plan

Official Proposals
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  • ExtraFi and Balancer are explicitly mentioned in the FAQ about DeFi activities.
  • The amount of withdrawal fees has been ~$112k since the fee was introduced
  • Feedback taken :writing_hand:
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How would this approach affect external holdings, such as IPOR’s yoUSD Loooper?

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why not take the yo allocation which we get as yeild + airdrop and freeze it in the treasury vault and release the whole amount equivalent to if 2.51% of the amount deposited once the resolve issue is solved those tokens can be released to users (even the yo team can even give option to give yo tokens as yield or usdc so when freezed it wont effect the price

27

The share price of the Loooper vault will be marked down as well but will not be liquidated as it is well below a liquidation threshold. Depositors in the Looper vault will be counted towards the RLP exposure proportional to the amount of yoUSD collateral in the Looper vault. If you deposited 1 USDC in the vault, that’s roughly equivalent to 2.02 yoUSD exposure. If RLP is recovered in full (just for example sake), you would receive roughly 6 cents per 1 USDC deposited in the looper vault.

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We’d send the USDC directly (most likely scenario) to avoid another claims process. Details to follow when that happens.

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A few clalrifications:

  1. yoUSD is not a stablecoin, it’s a yield bearing vault and its value increases vs USDC.
  2. The impact on DeFi activities is well contained. Only $300 of morpho collateral would be liquidated at a 3% price decrease (see morpho), which is neglibile. Liquidity providers in balancer are already considered in the contingency plan and exposure to such liquidity pools is also limited to ~$7k. Users in Pendle LP and PT are also considered in the plan, but YT holders are not (consistent with precedents in the industry)

Noted on the rest of your feedback :slight_smile:

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