[SIPS-078] Upcoming Turbo GHO Proposal
Goal
The goal of this forum post is to discuss the upcoming Cellar proposal asking Governance to accept the Turbo GHO strategy.
Context
Aave’s GHO stablecoin launched in mid July and has since been growing in supply, currently at ~$21M. We see an opportunity for Sommelier to optimize GHO liquidity and aid in GHO peg defense.
Sommelier vaults have demonstrated not only an ability to earn highly competitive yields, but also to be highly effective at liquidity optimization. For example, the existing TurboSWETH vault makes up roughly 2% of swETH liquidity while routing almost 40% in volume.
As GHO integrations continue, there will be an increasing set of yield opportunities for the strategy to pursue (e.g. leveraged looping strategies).
The deposit asset for the vault will be USDC. The motivation for this decision is primarily GHO being under peg. If the deposit asset were GHO, the vault would need to sell GHO to LP on Uniswap V3. With USDC as deposit asset, the vault can directly participate in peg defense and profit from GHO appreciation (buying GHO at a relatively cheap price).
This is similar to the rationale for the TurboSWETH vault taking ETH as deposit asset rather than swETH.
The TurboGHO vault will take exposure to the following assets:
- USDC
- GHO
- DAI
- USDT
- LUSD
and the following protocols:
- Uniswap V3
- Aave V3
- Aave V2
- Morpho V3
- Morpho V2
- Spark Protocol (sDAI)
Proposal for cellar authorization for strategy Turbo GHO
If approved, the chain will accept signed function calls submitted to the cellar contract from the strategy provider.
Name: Turbo GHO
Cellar share token: TurboGHO
Strategy providers: Seven Seas Capital and DeFine Logic Labs
Deployment: CellarWithOracleWithBalancerFlashLoans | Address 0x0c190ded9be5f512bd72827bdad4003e9cc7975c | Etherscan
Platform fee: 0.5% (0.375% for strategy provider + 0.125% for protocol)
Performance fee: 20% (15% for strategy provider, 5% for protocol)