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Butter 🧈
A USD-denominated stablecoin yield optimizer
Butter is a yield optimizer that automates yield farming associated with a basket of tokens determined by PopcornDAO. It has been created to allow users to pool resources and save on gas for stablecoin yield-farming. The current composition is backed by FRAX, RAI, alUSD, and mUSD.
Audited: ✅ by Zokyo

Stablecoin Statistics

a/o 10/08/2022

Butter Statistics

  • Composition: – 25% yvCurve-FRAX – 25% yvCurve-RAI – 25% yvCurve-mUSD – 25% yvCurve-alUSD
  • Has Exposure to: FRAX, RAI, mUSD, alUSD, and 3CRV (USDC/DAI/USDT)
  • Weighting: Neutral construction, equal weight
  • Rebalancing: Dependent on weight redistribution
  • Deposits: USDC, USDT, DAI, or 3CRV
  • Withdrawals: USDC, USDT, DAI, or 3CRV
  • APY: Variable
  • Streaming fee: 0.5%
  • Redemption fee: 0.5%
Benefits:
  • Typically one would need to make 6 or more transactions to enter into a similar position; this number is greatly reduced and the process is simplified with Butter.
  • Holders of Butter don’t need to chase yield since the underlying yield farming strategies can be adjusted by PopcornDAO according to changing market conditions in a risk-adjusted and yield-conscious manner.

Methodology

Popcorn gives equal consideration to fiat-backed, crypto collateral backed, and algorithmic stablecoins to be included in the composition.
Stablecoins must be interest-bearing and sufficiently liquid to be included in the underlying collateral. We also conduct historical analysis on pegged stability ratio, downturn elasticity, and time to repeg. Assets selected to be included in the composition must have sufficiently cleared third-party security audits.
To learn more about Butter’s underlying assets and the rationale behind selecting them, view this analysis of Butter’s composition.

Underlying Protocols

Butter has been designed with safety, security, and interoperability in mind. The batch minting and redemption contracts have been audited by Zokyo. Underlying protocols used by Butter include Set Protocol for managing the underlying basket of tokens, Curve’s AMM and gauge system which is the source of the yield, and Yearn which functions to automate yield accrual.
Butter also has exposure to the protocols underlying the associated stablecoins — this currently includes FRAX, RAI, mUSD, alUSD, USDC, USDT, and DAI. Even though the underlying protocols are battle-tested and meet the industry standard for security, interacting with any smart contract comes with risk, even if it has been audited. Use at your own risk.

Butter Demo

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Outline
Stablecoin Statistics
Butter Statistics
Methodology
Underlying Protocols
Butter Demo