EUR CoinVertible (EURCV)

A lot of people pinged us at @merkl_xyz about the donation trick Steakhouse is using to boost the APR on the EURCV vault.

It's an elegant way to reward every depositor in a vault at once, and Steakhouse is a serious player. But the mechanism has real downsides, on top of the transparency point already raised here (depositors can't tell the yield is incentivized, and there's no visible schedule or end date).

A few that matter:

You only get one lever: the total APR. Some providers don't want to pin the final rate, they want to add a fixed spread, say +2% on top of whatever the native yield is. Donation can approximate that but can't guarantee it. There's nothing keeping the payout rate below the NIM that Forge earns on the EURCV this vault allocates, so you can end up paying out more than you make.

Rewards have to be paid in the vault's asset. Fine if you're a stablecoin issuer sitting on that currency, but if you're a chain or protocol wanting to incentivize in your own token, you'd have to sell it first.

@0xDataWolf can find direct donations from steakhouse multisig: https://t.co/GpSbD0UMY0 https://t.co/Ifmn6LacfO