# \[IIP-27\] Clearpool PYTs as a new yield source for BY - Folkvang **URL:** \ **Category:** ⛓ IIPs\ **Created:** [November 11, 2022, 11:40am UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079 "2022-11-11T11:40:42Z")\ **Posts on this page:** 11\ **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:** [November 11, 2022, 11:40am UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/1 "2022-11-11T11:40:42Z")
### Authors Treasury League and Development League ### Summary This proposal focus on one key initiative and minor updates: - [Clearpool PYTs as a new yield source for BY - Folkvang](https://gov.pareto.credit/t/clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1066) ## Rationale We suggest visiting the dedicated governance forum post linked below for a comprehensive analysis of the initiative. Clearpool PYTs as a new yield source for BY - Folvang → [Forum post](https://gov.pareto.credit/t/clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1066) > [@Clearpool PYTs as a new yield source for BY - Folkvang](https://gov.pareto.credit/t/clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1066/1): > > […] Today we want to open the discussion on a new integration: the **[Folkvang](https://folkvang.io/)** DAI Clearpool tranches. > > - [Clearpool DAI (Folkvang) PYTs](https://app.idle.finance/#/tranches/clearpool/DAI), with specs available on GitHub [here](https://github.com/Idle-Finance/best-yield-PYT-strategy/blob/master/src/Contract.sol) > > Similar to Wintermute’s integration, Folkvang’s one would benefit doubly the DAI token holders > > > [@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%). > > [Perpetual 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. > > [Clearpool (Folkvang) pool](https://app.clearpool.finance/pool/0xe3D20A721522874D32548B4097d1afc6f024e45b?market=ethereum) is open since May 2022 and it has been part of the PYTs offering since October 2022. The Folkvang pool has a size of $9m with an average utilization rate of 84%. Folkvang has a borrowing capacity on Clearpool of up to $151m, i.e. the second largest borrower on Clearpool. > > ![image](https://canada1.discourse-cdn.com/flex031/uploads/idle/original/1X/332740bf5e8d7f97d653d539220a2f7726970dea.png) > > To provide a wider stablecoin offering, users can deposit DAI into the Folkvang PYTs. This smart contract will leverage 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. > > Currently, Folkvang pool provides 8.88% APY with an 84% utilization rate ([source](https://app.clearpool.finance/pool/0xe3D20A721522874D32548B4097d1afc6f024e45b?market=ethereum)). Thanks to Clearpool’s first-of-its-kind formula, APYs can be maintained stable by high pool utilization up to borrower capacity - equal to $151m for the Folkvang pool. In the proposal discussion post, we also highlighted some key mechanisms implemented by Clearpool to incentivize the utilization rate of the pools and protect lenders in case of risk of borrower default. > [@Clearpool PYTs as a new yield source for BY - Folkvang](https://gov.pareto.credit/t/clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1066/1): > > ### Clearpool details > > > [@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): > > > > Clearpool developed an [interest curve mechanism](https://medium.com/clearpool-finance/new-interest-curve-mechanism-9a1a5191977f) that encourages borrowers to optimally utilize liquidity in their pools while increasing lenders’ compensations. > > > > ![image](https://canada1.discourse-cdn.com/flex031/uploads/idle/original/1X/f012ab2529a1346440f8857c5e2aad4dade9ffbd.png) > > > > Clearpool’s smart contracts have been developed to incorporate a number of [safety measures](https://docs.clearpool.finance/clearpool/how-it-works/protocol/default) which protect both borrowers and lenders during black swan events. Clearpool’s pools have a default mechanism based on each pool utilization rate which forces borrowers to repay loans if the pool’s utilization rate is too high. > > > > | Utilization rate | Pool status | Time limit | > > | --- | --- | --- | > > | \< 95% | Active | No time limit | > > | \> 95% | Warning | Until UR = 99% or \< 95% | > > | \> 99% | Provisional default | 120 hours | > > > > The underlying yield generated by Clearpool is mainly composed of organic lending returns, limiting APY dilution with liquidity growth. ## Specifications The code for the IIP-27 can be found on GitHub [here](https://github.com/Idle-Finance/idle-proposals/blob/main/scripts/iip-27.ts). IIP-27 actions: - Add Senior tranche of cpFOL-DAI PYT as a new yield source for idleDAI Best Yield strategy - Disable stkAAVE price feed from Best Yield oracle - Update block number calculation for COMP (since after the merge block time has changed to 12s per block) Together with the above action, IIP-27 will set a new wrapper contract for the Clearpool Folkvang DAI pool: `0x67e78ED1cC4732816816A62F2e99CDC5CfaAc06E` ### Next Step We will open the on-chain voting phase shortly after the publication of this IIP. Given the last events affecting the crypto space, we would like to reiterate that a positive vote regarding this integration won’t lead to an immediate BY deployment in Folkvang’s pool. > [@Clearpool PYTs as a new yield source for BY - Folkvang](https://gov.pareto.credit/t/clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1066/4): > > ### Update #2 > > With the aim to speed up and facilitate liquidity deployment and make BY and PYTs ready to onboard new capital, we will open today the temperature check for the integration of the Folkvang DAI (Senior) PYTs into BY. > > The Governance vote (from proposal discussion to IIP execution) can take up to 15 days and could end up being a blocker for new liquidity deposits. Opening sooner the Temperature Check could let the DAO share his preferences about a new integration while Leagues are working to develop and bootstrap a new pool. > > […] ---
**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:** [November 11, 2022, 2:08pm UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/2 "2022-11-11T14:08:03Z")
### On-chain Voting Phase ![image](https://canada1.discourse-cdn.com/flex031/uploads/idle/original/1X/7831c05cc52b89d8c84dc48b364af13ca4ce7885.jpeg) ✍ Cast your on-chain $IDLE vote here: [HERE](https://app.idle.finance/#/governance/proposals/27) 🗓 End date: 2022-11-13T22:30:00Z ✍ $IDLE stakers (stkIDLE holders) can vote here: [HERE](https://snapshot.org/#/staking.idlefinance.eth/proposal/0xf76f443a613e3a70fa67f39c0dbb82d2d33138e6f726f2498cbed022a5cff1d7) 🗓 End date: 2022-11-13T12:00:00Z The threshold to make the off-chain poll valid (both metrics should be reached): - 20% of circulating stkIDLE voting the poll (min. ~145659 stkIDLE) - at least 70% on the same option. The [stkIDLE voting calculator](https://docs.google.com/spreadsheets/d/1BnH9boRmBADuyquvDMh0AmQfF97Zj76sIENKtySLU8o/edit?usp=sharing) will be used to calculate the final results. Make sure you have been [delegated](https://gov.pareto.credit/t/delegation-board/1049/5) to take part in this voting round. ---
**Author:** ![CryptoBag](https://avatars.discourse-cdn.com/v4/letter/c/f4b2a3/32.png) [@CryptoBag](https://gov.pareto.credit/u/CryptoBag)\ **Post date:** [November 11, 2022, 11:04pm UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/3 "2022-11-11T23:04:44Z")
Voted with recently staked IDLE and wallets funds, hope worked both. Voting in dashboard goes slow, is that normal? Dashboard loads slow. ---
**Author:** ![AllinCrypto](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/allincrypto/32/839_2.png) [@AllinCrypto](https://gov.pareto.credit/u/AllinCrypto)\ **Post date:** [November 12, 2022, 6:18am UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/4 "2022-11-12T06:18:16Z")
Hi, on the [KARMA DASHBOARD](https://www.showkarma.xyz/dao/delegates/idlefinance) you can easily see your score and activity by clicking your own wallet address. The IDLE team is working hard on a new dashboard, so hopefully everything works way better soon. You can always check better twice, cos yesterday i voted on snapshot, and now it was gone and needed to vote again 🥴 , normally no problems with snapshot. @Biaf , was the poll there re-opened or any idea what could happened? Cos my first vote was right after the poll was opened. ---
**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:** [November 12, 2022, 1:40pm UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/5 "2022-11-12T13:40:59Z")
Unfortunately, the ending time of the 1st Snapshot pool was wrong (time zone issue) and we had to open a new one with the right deadline. ---
**Author:** ![CryptoBag](https://avatars.discourse-cdn.com/v4/letter/c/f4b2a3/32.png) [@CryptoBag](https://gov.pareto.credit/u/CryptoBag)\ **Post date:** [November 14, 2022, 6:46am UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/6 "2022-11-14T06:46:18Z")
@Biaf I delegate myself and voted with the idle in my wallet, i saw my amount as as legit after the vote. But later it was zero, now i am not sure if it counted? ![SmartSelect_20221113_100749_Chrome](https://canada1.discourse-cdn.com/flex031/uploads/idle/original/1X/3f6eb7128bf7bbbb330da47409d80dda95abcdae.jpeg) ---
**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:** [November 14, 2022, 8:40am UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/7 "2022-11-14T08:40:22Z")
Reach us on [Discord](https://discord.gg/mpySAJp) \> General and share your wallet address. We will investigate the issue. ---
**Author:** ![AllinCrypto](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/allincrypto/32/839_2.png) [@AllinCrypto](https://gov.pareto.credit/u/AllinCrypto)\ **Post date:** [November 14, 2022, 11:51am UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/8 "2022-11-14T11:51:35Z")
@emixprime , you had some 0 point votes before, or is this story different? Doesn’t look like @CryptoBag actually vote with nothing. ---
**Author:** ![emixprime](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/emixprime/32/710_2.png) [@emixprime](https://gov.pareto.credit/u/emixprime)\ **Post date:** [November 15, 2022, 4:19pm UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/9 "2022-11-15T16:19:05Z")
@AllinCrypto I think this happened because he made the self-delegation **after** the IIP was created: - IIP-27 was launched ([tx](https://etherscan.io/tx/0xf8b73734457cd1540a9e47a7eed517430e2fd28bc1e4f2188f5ba3e03d629d22)) on 2022-11-11T12:22:00Z - @CryptoBag created a self-delegation ([tx](https://etherscan.io/tx/0xc9d452b6b170cdd6949a01efed4f6e54c68916f0a6141043ea510a1b72ead657)) on 2022-11-11T22:48:00Z ---
**Author:** ![AllinCrypto](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/allincrypto/32/839_2.png) [@AllinCrypto](https://gov.pareto.credit/u/AllinCrypto)\ **Post date:** [November 15, 2022, 7:17pm UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/10 "2022-11-15T19:17:38Z")
Ok clear! Maybe something to mention on the vote page, that a vote won’t count if the (self) Delegation is created after a poll is launched. That’s te story right? ( @Teo @samster91 ) ---
**Author:** ![william](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/william/32/10_2.png) [@william](https://gov.pareto.credit/u/william)\ **Post date:** [November 17, 2022, 11:26am UTC](https://gov.pareto.credit/t/iip-27-clearpool-pyts-as-a-new-yield-source-for-by-folkvang/1079/11 "2022-11-17T11:26:21Z")
That’s correct, one have to self delegate or delegate to someone before the on-chain vote. You just need to delegate once, no need to do it for each vote