Yam

Forum Post: https://forum.yam.finance/t/yip-91-yam-synths-polygon-liquidity-strategy/1551

Basic Summary

We need to provide liquidity to our New LSP synths on Polygon when they are ready (expected early November 2021). In order to do this we must set funds from the treasury, which lives on Ethereum mainnet to polygon, and then manage those funds there

Abstract - What am I proposing?

Liquidity allocation

In continuation of the asset allocation from YIP-83, I propose that we send 130 ETH and $1.1M in stablecoins to provide liquidity for our new synths on Polygon.

Motivation - Why am I proposing it?

We are launching new Synths on polygon as part of a rollout of our new DeFi-Tools product line. We need to continue bootstrapping these pools to grow the Yam Synths product. At the same time, utilizing these funds in our synths earns UMA rewards for the treasury. Yam Synths products are currently earning ~49% APR on ETH, and we can expect similar (most likely higher) returns on the funds we invest. I will have another post soon that goes over liquidity mining on polygon with the new LSP contracts. But the gist is it is easier and more capital efficient than the current model and should pay out higher APRs that currently, up to ~$20M in TVL.

Specifications - How am I proposing it is accomplished?

Proposed Treasury Funds to be moved to Polygon multi-sig: 130 ETH to be deployed to the 2xDPI synth $1.1 M USD to be deployed, split between to the Sushiswap APR Synth and 50x IL synth. Total is ~$1.6M dollars based on prices from 10/22/2021