Deposit YFI as collateral, receive wYFI. Provide StableUSD in a liquidity pool in SushiSwap without any IL losses. Borrow assets with leverage via Iron Bank.

Earn trading fees (stUSD used as universal stablecredit) + insane yield with leveraged loans.

Thread on y ecosystem....

With the leveraged farming via Iron Bank, @iearnfinance will attract the most users to their vaults. v2 vaults are also bound to come with some unique strategies only accessible inside yearn.

This will have a great impact on the token...

The token will be staked to receive fees from the protocol extracted from the overloaded yv2 (+yv1) vaults.

Alongside the token lock in exchange for wYFI (effectively, a token burn) this will create drastic demand for the YFI token. More to come later...

Let's talk about @SushiSwap. The current mechanism on how to prevent IL is not known. It is in the process of being developed as I type...

DeriSwap, which Andre is developing, will probably be used to prevent IL.

Howso? The yield gained will be used... https://twitter.com/Dogetoshi/status/1348444073993129987?s=20

to counteract the cost of purchasing a put option (If the above post is true).

This is genius.

Yield is *the* cost of purchasing a put option. With greater yields, the more protection against any IL. With greater IL protection, the greater the yields...

This incentivizes people who want to have IL protection to use yearns vaults/strategies. The greater the yield bearing strategy, the lower the IL cost.

This also incentivizes strategists to create high yield bearing strategies. This is because strategists get a direct fee from..

people that use their strategies for their farming.

If their strategy produces the highest yield, their strategy also produces the lowest impermanent loss.

The more people that use their strategy, the more they themselves earn.

Oh my.

Let's assume that this is the method and that we can protect against any potential impermanent losses that we may face.

With SushiSwap offering IL protection, LPs will flock to SushiSwap to gain their trading fees without IL...

As mentioned above, the StableCredit USD (stUSD for short) token is the staple in the StableCredit mechanism.

I predict LPs to provide StableCredit USD / alongside their own token to gain these fees. Why? ...

Because Stable USD will be interchangeable with any other token inside StableCredit. It will effectively replace...ETH.

What I am uncertain about is whether LPs will be required to own stUSD / alongside their token pair to gain trading fees, or is it only applicable to...

wYFI holders/stakers. wYFI will presumably be used to gain 50% of the fees from StableCredit swaps.

With LPs wanting to gain the most trading fees, they are required to own wYFI. This only means a greater impact on the YFI token as LPs are required to provide YFI...

as "collateral" to mint wYFI. Permanent collateral, if you will.

So if I am not mistaken, wYFI will be similar to a Uniswap/SushiSwap LP issued token with universal rights to every liquidity pool....? Hmm...

This is also not even mentioning BentoBox and it's lending + borrowing mechanism that will attract more users.

MetaWallet (gas-less wallet) will be used for SushiSwap trades. This greatly encourages users to use SushiSwap as their designated AMM, which...

will result in more fees for LPs.

The yearn strategies will use these large SushiSwap pools for their own vaults, which will attract even more users to the Sushiswap protocol itself! It's a never-ending cycle...

I am certain that there will be a direct correlation between DeriSwap and the SushiSwap token (similar to YFI and wYFI in StableCredit).

Sushiswap will also be involved in a stealth project following the release of DeriSwap w/ Yearn, which mean even more integrations! ...

Regarding @CreamdotFinance. The reserve will provide liquidity to SushiSwaps BentoBox and will be primarily used for leveraged farming via
@AlphaFinanceLab.

With the integrations between these many protocols, many more strategies are possible (such as cross-asset strategies).

Assuming everybody wants leveraged farming (ie. highest yield)--which they do--what will happen then?

With the leveraged strategies of Alpha Homora, it will greatly benefit the Cream protocol as there will be a higher borrow % further incentivizing a greater TVL.

h/t
@DeFi_Ted

With a higher borrow %, yearn vaults will be able to deposit assets into Cream itself to create other high yield bearing strategies as well...

Increasing yield once again dragging alongside those that seek high yield (ie. all of us, really).

They also have shut down their other operations (exchange and creamY in light of seeing SushiSwap and StableCredit being developed). I find this highly respectable.

I believe creamY was the direct inspiration for Andre's StableCredit. Hence why "...CREAM will become the...

launchpad for Yearn’s new StableCredit product."

@CoverProtocol
will be used to insure these integrated protocols.

Alongside that, individual covTokens will be used to insure every. individual. yearn. vault.

With the announcement of bundled protocol insurance, users can...

insure AlphaCreamSushiYearn all at one time. Users who use this whole ecosystem (many, since everything flows) will be able to protect their assets every step of the way.

Mentioned in the announcement as well is specific, isolated risk within protocols. (yearn vaults example...

mentioned above).

Now, I remind you, no solid information is out regarding how IL protection functions.

I don't see how this is a negative for any of the parties involved. It's a never ending cycle of never ending cycles.

Can't wait. (This is a repost, fixed some errors)