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Joined June 2024
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modellabs retweeted
Leading Ethereum projects announced today that they're launching the 'Ethereum Protocol Advocacy Alliance' to coordinate policy efforts.
Ethereum has needed something like this for quite a while now so I'm excited to see major players leading the charge!
modellabs retweeted
$GHO and $sGHO reached new important milestones!
$sGHO just crossed the 200M mark in circulating supply, growing by ~18% over the last 30 days.
Over 200M $GHO are currently earning a 7.18% yield without any protocol exposure. Simply deposit and earn.
Meanwhile, $GHO also hit a new ATH at 334M in circulating supply, up 17% over the same period.
With more integrations coming, we expect $GHO growth to remain strong through the end of the year.
🧵4/4
Next 1–2 weeks
Aave vote/execution;
Sky decision & buyback caps;
✅Why it matters: designs turn into on-chain data.
✅Takeaway: set alerts for execution txs, fee curves, and USDS/liquidity metrics.
🧵3/4
Sky/USDS (prop)
✅Staking rewards paid in $SKY (not USDS); 500M SKY → treasury; USDS buybacks ~ $300k/day; ~90d transition
✅Why it matters: align incentives & back the peg
Takeaway: tighter loop; watch dilution vs treasury risk
xitter.cf/tobalgarcia_/status/19…
Huge change potentially coming for $SKY holders:
• Fresh proposal to switch staking rewards from USDS to SKY, to SKY stakers.
• 500M SKY tokens moving to treasury for first implementation of SKY staking rewards
• SKY buyback rate would increase to 300k USDS PER DAY.
• After 90 days, rewards would be funded by SKY acquired via buybacks to make the system sustainable.
• Can revert if market conditions change.
• To be discussed in the @SkyEcosystem Community Call tomorrow.
🧵2/4
Aave (prop)
Permanent buybacks~$50M/yr from revenue + $20M now
✅Why it matters: use real revenue, not new issuance, to reward holders
✅Takeaway: steadier buy-side if approved; depends on buyback rhythm and keeping the Safety Module strong
xitter.cf/lemiscate/status/19809…
8/8
TL;DR
Still a proposal—subject to vote. Beef up the peg (bribes + PegKeeper) first, then open a $1B crvUSD line to YB (~$500M capacity). Same design, bigger scale.
NFA/DYOR
Proposal: gov.curve.finance/t/set-of-p…
7/8
User impact
If passed: more ybBTC capacity, fewer cap headaches—same hygiene.
Watch peg health, fees vs. rebalance costs, LTV drift, depth/liquidity.
Bigger pipes help manage tail risk; they don’t erase it.
6/8
Flip this first
Enable admin-fee distribution so YB prices in cashflows as scale rises.
Fee split: half funds rebalancing; half goes to unstaked ybBTC vs. veYB via a dynamic admin fee (as in our earlier explainer).
5/8
Economics check
Base APY (no boosts): WBTC 15.8% / cbBTC 21.1% / tBTC 13.0% ≈ 0.126%/day (~$189k/day; ~$1.32M/wk) to split.
Stables often clear ~10% APR → ~$77k/wk for ~$40M TVL.
DAO's ≤75M YB emissions + typical bribe efficiency cover it.
Figures move with market
4/8
Quick math
Assume 3 BTC/crvUSD pools ~$100M each (~$300M total). The stables side must absorb ~$30M crvUSD. If ~25% imbalance is OK, you want ~$40M TVL there.
Scale YB up → those sinks must scale too.
3/8
Why this sequence？
🔹YB's BTC/crvUSD flows push crvUSD into/out of the crvUSD–stablecoin pools.
🔹YB targets ~50% LTV (≈200% collat), but the BTC/crvUSD pool's crvUSD share can swing 40–60%.
🔹Bigger stable pools + more PegKeeper headroom = smoother peg as YB scales.
2/8
What's in it:
✅YB emissions → bribes for crvUSD stables (e.g., crvUSD/USDC), cap 360k YB/wk.
✅PegKeeper: $108M → $300M.
✅$1B crvUSD credit line for YB (~$500M capacity).
1/8
Curve plan to scale ybBTC—bigger credit line, stronger crvUSD peg infra.
Quick read: more room for Yield Basis (YB) and more robust peg plumbing. Pending governance vote. 👇
🧵8/8
TL;DR
ybBTC = a share that targets ~1× BTC + fees. Not principal-protected.
NFA/DYOR.
xitter.cf/blockmodel_lab/status/…
🧵7/8
Who it suits
✅Want BTC cash flow? Stay unstaked.
✅Want emissions + governance? Stake and maybe vote-lock.
You can switch if the market changes.
🧵6/8
Quick feel
Start with 1.00 BTC.
🔹Fees ~6% (ann.), costs ~2% → ~+4% net/yr → redeem ~1.04 BTC.
🔹Fees ~1%, costs ~3% → ~-2% net → <1 BTC.
Yes, BTC-denom losses can happen.