With the successful Compound vote, the funds have been successfully transferred in and the execution out of ZRX and BAT has commenced!
You can monitor the vault at https://app.aera.finance/1/vault/v2/0x3D6eEf6A92b15361697698695334E98C5db91D6b
We will consolidate all updates and progress in this thread and we welcome questions from the community.
Some initial results:
The vault is currently valued at $500k, and 3.7% of the Vault holdings ($23.7k) has been moved into wstETH and USDc.
The wstETH is currently earning 4.06% yield
Note that the holdings for wstETH, wETH and USDC are currently in the allocation targeting the 15% portfolio volatility, but that the chart on the dashboard will take a few days to accurately show the volatility target (needs 15 days of data to generate)
Exciting to see this pilot program get off the ground! It’s nice to see reserves being diversified into a yield-bearing asset like
I think this experiment opens up the discussion for how the DAO could optimize its other non-yield-bearing reserves. Specifically, stablecoins like USDC can provide decent returns if put to work in this high-rate environment. I notice the Aera vault has already diversified into a small amount USDC.
Curious if Aera or the community has thoughts on either moving the USDC into a yield-bearing venue like Compound v3 (cUSDCv3) or diversifying into other yield-bearing stables?
Hi Kevin, thanks for your feedback. Since the pilot is utilizing a portion of Compound’s reserves, reallocating the reserve funds in that manner may put them at risk in a way that Compound finds unacceptable. Generally speaking, though, Aera supports ERC4626-compatible sources of stablecoin yield, and we’re evaluating alternative yield sources.