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.
- 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%
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.
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.