Investment Vaults Launch
Introduction
As presented in our April and May Roadmap, the Iron Finance Investment Vaults are set to launch during Week 3 of April.
The key mission of our multi-strategy Investment Vaults is to put up idle collateral in the Iron Minting pool into use and accrue passive income which will then flow in the Collateral Reserve and ultimately benefit STEEL stakers in the Foundry. At the time of writing this proposal, there is over $30M BUSD of idle collateral in the Minting pool.
Investment Vaults technology
First of all, we are very proud to announce that Value DeFi is building our investment vaults by customizing vSafe technology for Iron Finance. vSafe are audited state-of-the-art multi-strategy yield-optimizers that allow unprecedented composability and flexibility of LP assets to maximize returns. Acquiring such a tailor-made product is a significant milestone for Iron Finance and we are excited more than ever to have Value DeFi as a product and tech partner. To formalize the partnership and compensate Value DeFi for our (nearly completed) vaults development work, Iron Finance will purchase 100 vBSWAP on the market (with our own team’s money, no negative price impact on STEEL) and hold in our vault controller.
All vaults strategies, the heart of Iron Finance investment vaults, will also be developed by ValueDeFi, as well as maintained and optimized for new strategies with better risk and reward profiles. To add, as per our plan to increase decentralized decision-making, we want to engage our community in deciding what percentage of idle collateral will be allocated for the vaults.
Vault strategies and allocations will first be determined by our team and will be adjusted by governance voting thereafter. We plan to kick off with 1 or 2 strategies with the lowest risk profile (think of no IL, no leverage, no lockup targets like Venus) and then gradually add complexity to risk/reward profile management and yield optimizations. In general, all future changes to strategies will be decided by STEEL holders (governance voting) and instructed to Value DeFi team for implementation and adjustments.
#IFGV4: Collateral allocation percentage
#IFGV4: What percentage of collateral should be allocated for the investment vaults?
a) 50%
b) 60%
c) 70%
d) 75%
The IFGV#4 voting is LIVE on our Governance voting page for 48 hours. Eligible voters are STEEL holders, STEEL holders in the Foundry, STEEL-BNB LP token holders in vFarm and vSafe.
As soon as IFGV#4 is over, idle collateral will be allocated to vaults and the multi-strategies will be finalized. The vaults will be up and running during the first half of next week latest.
#IFGV5: Reserve collateral threshold
#IFGV5: Reserve collateral threshold percentage:
a) 15%
b) 20%
c) 25%
d) 30%
The reserve collateral threshold determines at what percentage the Vaults will re-call investments. For instance, if based on the result of #IFGV4 is to invest 75% of all BUSD collateral into the Vaults, then 25% of all the collateral will be stored in the protocol.
If the reserve collateral threshold is voted to be 15%, then if the 25% of the BUSD collateral decreases by 15% due to the daily redemptions, then a part of the invested BUSD in the Vaults will be withdrawn to put money back into the protocol, so it has 25% of all the BUSD collateral again.
The IFGV#5 voting is LIVE on our Governance voting page for 48 hours. Eligible voters are STEEL holders, STEEL holders in the Foundry, STEEL-BNB LP token holders in vFarm and vSafe.
