As the DeFi landscape evolves, it’s essential to continuously assess and optimize the asset allocations to maximize returns. This proposal addresses the need to enhance the yield of the USDC+ rToken, aiming to adjust the basket of assets backing USDC+ by replacing certain components with more profitable alternatives, specifically incorporating USDC Morpho Blue curated by Steakhouse.
Proposed Changes:
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Remove fUSD from Flux Finance: Due to its lower yield performance, remove fUSD from the USDC+ basket. This action will help eliminate an underperforming asset, thereby reducing drag on the overall yield of USDC+.
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Add USDC Morpho Blue Curated by Steakhouse: To replace fUSD, integrate USDC Morpho Blue into the basket. USDC Morpho Blue is a high-yield USDC variant managed by Steakhouse, which leverages Morpho Blue’s lending protocol to offer superior returns.
Rationale:
- Enhanced Yield: By incorporating USDC Morpho Blue, USDC+ is expected to benefit from higher interest rates available through Morpho Blue’s optimized lending mechanisms.
- Risk Management: Morpho Blue’s lending approach provides an added layer of risk mitigation compared to traditional pools.
- Strategic Partnerships: Collaborating with Steakhouse for the curation of USDC Morpho Blue opens up further opportunities for synergy and enhanced performance.
Expected Impact:
The proposed adjustments to the USDC+ basket are anticipated to significantly improve the overall yield, making USDC+ more attractive to both current and potential holders.
- YAE
- NAE