[Strategy] crvRENWBTC - farming in Mushrooms Finance

Summary

Deposit crvRENWBTC in Mushrooms earning vaults and stake the returned vault LP token (mcrvRenWBTC) in its farming pool to yield $MM as additional source of profit.

Abstract

This strategy will try to earn both $CRV plus $MM at the same time via standard yield farming process.

The undelying strategy in Mushrooms Finance for deposited crvRENWBTC is supplied to Curve for liquidity mining, the mining awards is detailed at its DAO/gauge.

Motivation

Get a higher (or alternative) yield option than currently default strategy in Setts.

Specification

The entire strategy logic should be quite straight-forward as outlined following:

  1. Degens deposit crvRENWBTC into Sett associated with proposed strategy
  2. Proposed Sett strategy then invest those deposit by depositing in Mushrooms Finance vaults
  3. Upon successful invest, Sett strategy would receive mcrvRenWBTC minted from Mushrooms Finance vaults as LP token
  4. Lastly Sett strategy stake received mcrvRenWBTC token to Mushrooms Finance farming pool to yield additional $MM token and a standard harvesting-exchange-reinvest process could applied here to compouding the earning.
  5. Unstake from farming pool and Withdraw from vault in Mushrooms Finance help Sett strategy to exit the investment. Please note there is a 0.2% withdrawal fee in its vault.
  6. The Mushrooms Finance states that its $MM farming schedule would last 4 years from now thus this strategy would be a relatively sustainable choice in the long run. No need worry sth like Uniswap LP mining just for several weeks

For:

  • Sustainable yield addition to current default Sett strategy by reliable yield farming
  • Possibility to extend to other vault in future for any profitable asset in Curve/Mushrooms like tBTC

Against:

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