[SIPS-061] Upcoming Real Yield BTC Cellar Proposal

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Goal

The goal of this forum post is to discuss the upcoming Cellar proposal asking Governance to accept the Real Yield BTC strategy.

Context

Sommelier’s Real Yield ETH and USD strategies have demonstrated impressive performance, generating state of the art yields for ETH and stablecoins respectively. WBTC represents a significant opportunity because it (1) is a widely held asset with (2) relatively few on-chain yield opportunities.

The primary goal of Real Yield BTC is to make available sustainable WBTC-denominated yields through a dynamic and evolving set of strategies. Initially, the Cellar will use Morpho for efficient leveraged ETH staking against WBTC collateral. The Cellar may additionally borrow ETH to deposit into Real Yield ETH. In the future, there is a possibility for Real Yield BTC to make use of the Fraximal Cellar.

The Cellar will make use of the following assets

  • WBTC
  • WETH

and the following protocols:

  • Aave V3
  • Morpho (both lending and borrowing on Aave V3)

Proposal for cellar authorization for strategy Real Yield BTC

If approved, the chain will accept signed function calls submitted to the cellar contract from the strategy provider.

Name: Real Yield BTC

Cellar share token: YieldBTC

Platform fee: 1% (0.75% for strategy provider + 0.25% for protocol)

Performance fee: 20% (15% for strategy provider, 5% for protocol)

Strategy providers: Seven Seas Capital and DeFine Logic Labs

We will update this post with more details in the coming days, including contract deployments and relevant content.

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The Cellar has been deployed at the following address: CellarInitializableV2_2 | Address 0x0274a704a6D9129F90A62dDC6f6024b33EcDad36 | Etherscan

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Notice: The list of assets that the Real Yield BTC Cellar can take on includes (in addition to WETH) wstETH, rETH, and cbETH. Because RYBTC can take positions in the Real Yield ETH Cellar, it can also indirectly take exposure to assets that RYETH has access to (which include wstETH, rETH, and cbETH).
Similarly, has exposure to Uniswap V3 and Aave V2 through RYETH. As a result, Uniswap V3 and Aave V2 should have been included in the list of protocols for RYBTC.
The Cellar was not initialized with Uniswap V3 so a Steward update is being released to add direct support for it.