Sweet Caramel V1

POP, Butter, and Staking

Are you ready for some sweet caramel-flavored Popcorn? Sweet Caramel is the first iteration of the Popcorn App. On Sweet Caramel you will find our first product Butter as well as functionality to stake your POP, Butter, and POP-USDC LP tokens.

Sweet Caramel Functionality:

• Mint Butter to optimize your stablecoin yield 🧈
• Claim and stake Butter to earn POP rewards on Ethereum 🍿
• Stake POP to earn POP rewards on Ethereum and Polygon 🍿
• Stake POP-USDC LP tokens to earn POP rewards 🍿 on Ethereum and Polygon 🍿

What is Butter?

Butter is a yield optimizer that automates yield farming associated with a basket of tokens determined by PopcornDAO. The current composition is largely backed by MIM, a stablecoin backed by interest-bearing tokens, and FRAX, a fractional reserve algorithmic stablecoin. It has been created to allow users to pool resources and save on gas for stablecoin yield-farming. Typically, to manually enter into a similar position, one would need to make 6 or more transactions, and with Butter, this number is greatly reduced and the process is simplified. Another benefit is that holders of Butter don’t need to chase yield since the underlying yield farming strategies can be adjusted by PopcornDAO according to changing market conditions in a risk adjusted and yield-conscious manner.

What underlying protocols are being used? Is it safe to use?

Butter has been designed with safety, security and interoperability in mind. The batch minting and redemption contracts have been audited by Zokyo. Other underlying protocols used by Butter include Set Protocol for managing the underlying basket of tokens, Curve’s AMM and gauge system which is the source of the yield, and Yearn which functions to automate yield accrual. Butter also has exposure to the protocols underlying the associated stablecoins — this currently includes (FRAX, RAI, mUSD, alUSD, MIM, USDC, USDT, and DAI). Even though the underlying protocols are battle-tested and meet the industry standard for security, interacting with any smart contract comes with risk, even if it has been audited. Use at your own risk.

Butter Stats

• Composition:
  – 25% yvCurve-FRAX
  – 25% yvCurve-RAI
  – 25% yvCurve-mUSD
  – 25% yvCurve-alUSD
• Has Exposure to: FRAX, RAI, mUSD, alUSD, and 3CRV (USDC/DAI/USDT)
• Weighting: Neutral construction, equal weight
• Rebalancing: Dependent on weight redistribution
• Deposits: USDC, USDT, DAI, or 3CRV
• Withdrawals: USDC, USDT, DAI, or 3CRV
• APY: Variable
• Streaming fee: 0.5%
• Redemption fee: 0.5%

How does Sweet Caramel and Butter create positive global impact?

PopcornDAO collectively decides on which beneficiaries receive a percentage of earned protocol fees from Butter by participating in beneficiary nominations and grant elections. These beneficiaries are nonprofits, charities, and grassroots projects working in the areas of environment, education, open-source, and inequality. Both Sweet Caramel and Butter not only allow users to optimize yield on stablecoins and POP, but simultaneously fund nonprofits and social impact organizations at no additional cost to the user to ultimately create positive global impact through DeFi.

Release Information

Over the next week, we’ll be sharing news about the release of both Sweet Caramel and Butter, as well our liquidity mining program. Stay tuned!

Stay sweet my friends 🍭,

The Popcorn Team 🍿