# Clearpool YTs as a new yield source for DAI BY - Portofino **URL:** \ **Category:** đź“‘ Formal Proposals\ **Created:** [April 7, 2023, 6:03pm UTC](https://gov.pareto.credit/t/clearpool-yts-as-a-new-yield-source-for-dai-by-portofino/1144 "2023-04-07T18:03:43Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![Biaf](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/biaf/32/213_2.png) [@Biaf](https://gov.pareto.credit/u/Biaf)\ **Post date:** [April 7, 2023, 6:03pm UTC](https://gov.pareto.credit/t/clearpool-yts-as-a-new-yield-source-for-dai-by-portofino/1144/1 "2023-04-07T18:03:43Z")
### Author Treasury League ### Summary A proposal to add the Portofino Clearpool DAI Yield Tranches as a new yield source for the DAI Best Yield strategies. ### References - [Euler staking DAI PYTs as a new yield source for BY](https://gov.pareto.credit/t/euler-staking-dai-pyts-as-a-new-yield-source-for-by/1113) post - [Update Best Yield DAI yield sources](https://gov.pareto.credit/t/update-best-yield-dai-yield-sources/1142) post - [Portofino technologies](https://www.portofino.tech/) website ## Background After the recent exploit on Euler, Leagues have suggested to remove the Euler Yield Tranches from the basket of yield source of Best Yield strategies as a precautionary measure before a new audit is completed. The current yield source of the Best Yield strategies would then be: | Strategy | Token | Underlying markets | | --- | --- | --- | | Senior BY | DAI | Aave, Compound, ~~Euler~~ | | Junior BY | DAI | ~~Euler~~ , Morpho | ## Proposal This proposal aims to add a new Clearpool Yield Tranche to the Best Yield strategies based on DAI: - [Clearpool DAI (Portofino) YTs](https://app.idle.finance/#/earn/protected-yield/0x43ed68703006add5f99ce36b5182392362369c1c), with specs available on GitHub [here](https://github.com/Idle-Finance/best-yield-PYT-strategy/blob/master/src/Contract.sol) Similar to previous Clearpool’s integration, Portofino’s one would benefit doubly the Idle users > [@Clearpool PYTs as a new yield source for BY - Wintermute](https://gov.pareto.credit/t/clearpool-pyts-as-a-new-yield-source-for-by-wintermute/1056/1): > > By integrating Clearpool USDC (Senior) tranches as a new yield source for the USDC BY strategy, we can create a two-side benefit for the Idle protocol: > > 1. The USDC BY strategy can add a new yield source, besides the usual Aave and Compound, able to offer an average APY in the 5% to 10% range. Currently, [Aave](https://app.aave.com/reserve-overview/?underlyingAsset=0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48&marketName=proto_mainnet) and [Compound](https://compound.finance/markets/USDC) offer APYs lower than 1%. This significant increase in yield can benefit current BY LPs and attract new users to the protocol. > 2. The USDC BY funds flowing to the Senior side of Clearpool PYTs can create a stable source of funding for the Senior tranches and consequently incentive new Junior liquidity deployments thanks to the boosted APYs available (with an expected average APY in the range of 10% to 20%). [Yield Tranches](https://docs.idle.finance/products/perpetual-yield-tranches) are live since [December 2021](https://medium.com/idle-finance/make-yield-your-own-perpetual-yield-tranches-are-live-2aef53c153d6) holding a cumulative TVL of up to $50m. ### Portofino details > Portofino technologies is a high frequency trading market maker that uses the borrowed funds as trading capital, providing superior returns thanks to its advanced machine learning & stochastic control techniques. [Clearpool (Portofino) pool](https://app.clearpool.finance/pool/0x4a90c14335e81829d7cb0002605f555b8a784106?market=ethereum) is live since early March. The Portofino pool has a size of ~$1m and a maximum borrowing capacity of up to $24m. [Credora](https://credora.io/) rates the borrower with an A. | Protocol | Borrower | Capacity | Pool size | Credora’s rating | | --- | --- | --- | --- | --- | | Clearpool | Portofino | $24,300,000 | 962,740 | A | At the time of writing, the Portofino pool provides 16.55% APR with an 81% utilization rate ([source](https://app.clearpool.finance/pool/0x4a90c14335e81829d7cb0002605f555b8a784106?market=ethereum)). The pool will use the [Peg Stability Model (PSM)](https://makerdao.world/en/learn/governance/module-psm/) of Maker DAO to swap 1:1 DAI to USDC, avoiding any slippage or impermanent loss risk. ### Risk rating Following the new version of the [risk rating framework](https://gov.pareto.credit/t/risk-framework-version-1/1143/3), the Clearpool (Portofino) Yield Tranches can be considered as a valid market to become a new yield source of the Best Yield strategies. In order to trigger any BY deployment, the Yield Tranches will need to have at least a 30% coverage on Senior funds coming from the Junior counterparty. > [@Risk Framework (version 1)](https://gov.pareto.credit/t/risk-framework-version-1/1143/3): > > ### Rating example: uncollateralized lending > > Using the framework described above, we can rate the newly launched Clearpool’s (Portofino) as follows > > ![image](https://canada1.discourse-cdn.com/flex031/uploads/idle/original/2X/2/239c80dcd9bce9099a75739054e4c5d6a79216e7.png) ## Next steps We are going to leave this thread open for comments regarding this proposal, and tomorrow, if there are no objections, we will open the temperature check. ---
**Author:** ![Biaf](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/biaf/32/213_2.png) [@Biaf](https://gov.pareto.credit/u/Biaf)\ **Post date:** [April 8, 2023, 5:49pm UTC](https://gov.pareto.credit/t/clearpool-yts-as-a-new-yield-source-for-dai-by-portofino/1144/2 "2023-04-08T17:49:24Z")
### Temperature check voting The voting phase to remove the Euler YTs and add the Clearpool Portofino YTs starts now 🗳 ![image](https://canada1.discourse-cdn.com/flex031/uploads/idle/original/2X/c/c9397939c7c1211086e184d4698be7e34dd74ab9.jpeg) - Remove Euler Yield Tranches - Add Clearpool Portofino’s Yield Tranches - Both Actions - None of the above ➡ Poll for $IDLE holders: [HERE](https://snapshot.org/#/idlefinance.eth/proposal/0x3f2db95670f9b2507eb2ba8905209018c2e268fd2316cdce772f80624f6a5823) ➡ Poll for $IDLE stakers (stkIDLE holders): [HERE](https://snapshot.org/#/staking.idlefinance.eth/proposal/0x4a533362d86e79e184399ebcf8f0459cd17a461c5c55752307a6f1496417a28e) ⏰ Polls will close on 2023-04-11T18:00:00Z The final $IDLE voting weights will be calculated using the [approved calculator](https://docs.google.com/spreadsheets/d/1BnH9boRmBADuyquvDMh0AmQfF97Zj76sIENKtySLU8o/edit?usp=sharing). Looking to delegate your vote on Snapshot? Follow the official [Snapshot guide](https://docs.snapshot.org/guides/delegation). Let your vote count! ✍ ---
**Author:** ![Biaf](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/biaf/32/213_2.png) [@Biaf](https://gov.pareto.credit/u/Biaf)\ **Post date:** [April 11, 2023, 6:14pm UTC](https://gov.pareto.credit/t/clearpool-yts-as-a-new-yield-source-for-dai-by-portofino/1144/3 "2023-04-11T18:14:09Z")
### Temperature check results Temperature Check passed ✅ The proposal to update the DAI BY’s underlying markets by removing the Euler YTs and adding the Clearpool (Portofino) YTs is now ready to hit the on-chain phase! ![image](https://canada1.discourse-cdn.com/flex031/uploads/idle/original/2X/3/305467a4828b543669698608ab0c77fbe75ecfc0.jpeg)