VIP-24: Pool Retirement
Summary
Sunset several pools with low participation into “retirement”, closing new withdrawals and withdrawing funds from protocols.
Abstract
Several Vesper pools have experienced extended periods of low demand. This may be attributed to low yield opportunities and/or a lack of interest surrounding the deposit asset.
Vesper utilizes revenue from yield earned as gas for all pool operations. Pools that do not achieve sufficient deposits cost more in gas to operate than they contribute in revenue. This diminishes the overall revenue model, decreasing the amount of VSP bought back for depositors.
By retiring these pools, the protocol can realize better revenue without detracting from the general user experience.
Expectations
Migrate the following pools into a “retirement” setting. As retired pools, users can still withdraw funds from the app, but they will no longer be earning any yield. Additionally, new deposits will not be permitted.
The following pools are to be retired:
Grow
- Aggressive DPI
- Conservative USDT
- Conservative DAI
Earn
- USDC-LMR
- DAI-DPI
- DAI-PUNK
- DAI-SHIB
- LINK-DAI
Orbit
- FEI
- AlUSD
Even during periods of low gas costs, like recently, our protocol can save $5,000-$10,000 per year in operational expenses.
Specification
Migrate the above pools into a retirement status 10 days after approval, which requires the following changes:
Smart Contract
- Pause deposits
- Stop strategy rebalancing
Front End
- Display “Retired” status
- Remove “Deposit” button