Thread by @emilianobonassi

1/Y A thread on how you can leverage @iearnfinance not only as a yield source provider but also as a very powerful (and simple) framework to develop creative strategies.

A pegging mechanism which uses yield to peg @proofofhumanity $UBI to a target supply via a meta-vault

More👇

https://twitter.com/santisiri/status/1388545452849643525

2/Y Few weeks ago @ryantcwynar @rudygt and @santisiri pinged me on brainstorm about how to use yield to burn @proofofhumanity $ubi so they can keep the supply stable

https://twitter.com/ryantcwynar/status/1383093206347288580?s=20

3/Y @proofofhumanity is a project which tries to solve challenges on digital identity developing a sybil resistant protocol, by @Kleros_io and @DemocracyEarth

TL;DR you verify your identity and mint $UBI, so supply increase for every human verified

proofofhumanity.id

4/Y The system we realised is a (yearn) vault (e.g. ubiDAI) where you deposit your asset (DAI)

This is deposited on the respective yearn vault (yvDAI)

Part of the profit is used to buy $UBI on Uniswap and burned

The system buy as much as needed to reach a specific supply (10M)

5/Y A really basic pegging mechanism which could seems a fork but it's not, we use @iearnfinance technology because it offers:

- tokenization of user deposits
- safe and simple strategies framework
- utilities (e.g. profit/mgmt fees)
- and other cool features

And ...

6/Y It's working, the very first harvest on 600 $DAI deposited few hours ago profited 0.04 DAI from $yvDAI and used half to buy 0.05 $UBI burning them

The remaining 0.02 DAI becomes profits for $ubiDAI users 😉

etherscan.io/tx/0xcee17e09d…

7/Y THE END. But this is just the beginning, feedbacks are welcome

@santisiri and @proofofhumanity are eager to know your thoughts!

github.com/emilianobonass…

@Ceazor7 maybe a diagram could help, thanks 🙏