Upcoming Proposal to Begin Migrating Real Yield ETH to Real Yield ETH 2.0

This post is to discuss the plan to migrate liquidity from Real Yield ETH to Real Yield ETH 2.0

RYETH was launched on the Cellars V2 architecture. This architecture has several limitations compared to the latest 2.5 architecture, including only supporting a single deposit asset and being significantly more expensive for depositors. This was the motivation for the Real Yield ETH 2.0 proposal:

The goal of the migration is to provide a seamless UX for RYETH depositors. Real Yield ETH 2.0 will launch in stealth while liquidity is slowly migrated from RYETH (the strategist will deposit over time into the new vault from the old one). This is because the liquidity in RYETH cannot be instantly migrated today due to its leveraged positions. If this proposal is accepted, this process requires no action from depositors.

It is also worth noting the expanded assets and protocols that are available in RYETH 2.0 but not in 1.0. The new assets include swETH, osETH, and ETHX. The new protocols include Balancer, Curve, and Morpho Blue.

The LST space has evolved and created new market opportunities. Now established LSTs like swETH, osETH, and ETHX provide peg arbitrage and liquidity provisioning opportunities that didn’t exist when RYETH was initially launched. At the same time, the yield landscape has become more complex with LRTs. We believe it’s important for the flagship Sommelier vaults to evolve with this landscape, which requires supporting more yield sources.

The proposal will be effected by a Scheduled Cork that adds Real Yield ETH 2.0 as a position in Real Yield ETH 1.0. After that, RYETH 1.0 may begin slowly depositing into 2.0 to facilitate the migration.