Today we announce the arrival of the PickleJars (or pJars for short).
Formerly known as pVaults, this ✨ new product from the Pickle Finance team will be landing on Tuesday 8am UTC 🎉🎉 🎉 .
While this code is not audited, much of the implementation is taken from Yearn‘s yVaults. And if you diff and read the contracts you will see that the logic is largely identical.
⚠️ Warning ⚠️ This is an experimental project and there is a very real risk you can lose all of your money. Do NOT put in more money than you are willing to lose. This is not financial advice; users beware as we cannot be liable for any losses.
Each pJar employs a different alpha seeking strategy, but fundamentally all work in a similar pattern.
- LPs deposit Asset into a pJar and receive pAsset
- Asset is deployed into an alpha-seeking strategy to generate returns
- Returns are distributed back to the pool, causing an appreciation in pAsset while also supporting governance and PICKLE holders through fees
The fee structure is similar to yVaults but with a few differences:
- 3% to governance for subsidized gas event (this is 5% on yVaults)
- 0.5% to the function caller (as a reward for triggering the strategy)
- 1.5% is used to buy and burn PICKLEs from the market
There will also be a 0.5% withdrawal fee, the same as yVaults.
pJar 0: The sCRV pJar
The first pJar is going to be quite simple. You can consider this a sub-orbital test flight before we attempt a launch into low earth orbit.
In short, you will be depositing sCRV tokens to gain more sCRV tokens.
The returns come from farming the sCRV tokens and using those proceeds to buy stablecoins that we will feed back into Curve for more sCRV tokens.
Here’s a diagram to help explain the steps:
In order to deposit into this pJar, LPs will need to first get sCRV by depositing stablecoins into the Curve sUSDv2 pool. This is how the pJar will work:
- LP deposits sCRV into into the pJar and gets psCRV in return
- sCRV from the pJar is staked to earn CRV and SNX
- CRV and SNX are market sold for the stablecoin with the least liquidity in the Curve sUSDv2 pool
- This stablecoin is added into the Curve sUSDv2 pool for more sCRV
- The additional sCRV are deposited back into the pJar and the cycle continues
The returns from this can only be estimated at this time through running one of our tests. The estimated APY is around 40.5%:
We’ll need a decent amount of liquidity in the vault and some time needs to pass before we can provide a more accurate number. Keep in mind that the APY is also subject to the prices of CRV and SNX.
pJar 1: The Leveraged-Short DAI pJar
🥒 Join the PickleJar Community
New pJars will continually be introduced and implemented in the weeks and months to come. That’s why we invite you, the reader, to join us on our Discord so we can build this together.
The community has already proposed some very interesting solutions like proposing to send profits directly to ETH/PICKLE LPs instead of buy & burn. Further discussion is also happening about the future pJar with flash loans and how Maker governance can change things for us all.
The dev team is there and ready to bounce ideas with you to make this something we can all take part in creating together. So stop sitting on the sidelines and build the next pJar with us.
💬 Final note
You can start depositing stablecoins to pJar 0 at pickle.finance/jars at Tuesday 8am UTC. If there are any new updates or changes to this, we’ll post first to the Discord so join us there if you haven’t already.
And don’t forget to follow us on Twitter @picklefinance
Contributors to Pickle have made reasonable efforts at ensuring the integrity of the protocol including tests. Pickle is completely valueless and has 0 financial value. Anyone who chooses to engage with these contracts, including the Pickle token contract and the staking contracts, are doing so at their own risk. You should perform your own due diligence.