VIP 12: Compound PCV Router

Background

Currently VOLT is moving to a model where PCV is solely backed by USDC and DAI. The current yield venue is compound, with more venues coming soon.

In order to give the VOLT token holders the best yield, assuming risk equivalence between USDC and DAI, the VOLT system will rebalance between the highest yielding stablecoin in compound.

Proposal

Create a router that allows rebalancing between cDAI and cUSDC on compound. This router will be able to be triggered by a permissioned role that the core team will have and use to periodically rebalance when supply rates vary significantly between DAI and USDC on compound.

Security Review

This code is not user facing, and does not allow for movement of PCV, except between pre-existing whitelisted compound PCV deposits. Any PCV movement can only be done by whitelisted roles and this contract can only move PCV between PCV deposits the protocol owns. Because of this code’s security profile, this pull request will require 3 security reviews from other smart contract developers that will check the code, deployment scripts, integration tests, and governance proposal.

Implementation

Pull request to implement this code can be found here Compound PCV Router by ElliotFriedman · Pull Request #119 · volt-protocol/volt-protocol-core · GitHub

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VIP-12 has been submitted to the Timelock and will go live tomorrow.

VIP-12 is now live! Keep an eye out for the first optimizations. Ethereum Transaction Hash (Txhash) Details | Etherscan

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Moving 750k in PCV only cost $10 in gas to optimize yields for all Volt holders! Ethereum Transaction Hash (Txhash) Details | Etherscan