How @yieldbasis improves WBTC pool parameters and liquidity handling to significantly increase trading APR Two votes are live at once. Curve vote #1486 changes the parameters of the YB-WBTC pool itself, and YieldBasis proposal #54 follows on the YB side. The main change is that the pool gets an external navigator that tells it where to move the liquidity peg. The problem A pool keeps its money concentrated around one point. When BTC moves away, that point has to be moved after it, and every such move is paid for out of the pool's profit. Until now the point followed an average of past prices. On a turn it is always late: the pool pays to move to where the market has already left. And in a chop it pays twice, for nothing. The solution A separate contract watches two moving averages: a fast one with about two hours of memory, and a slow one with about fifteen. The gap between them shows where the market is pulling and how hard. The target is placed neither on the slow one nor on the fast one, but a little beyond the fast one in the same direction. The point now leads the trend instead of following it. A worked example Slow average 100,000, fast average 100,300. The pull is 300 upward. Target = 100,000 + 1.27 x 300 = 100,381, which is 81 beyond the fast average. Pulling down, the target would sit the same distance below the fast average. Symmetric. Why this is not fortune telling Three limiters, and they matter more than the idea itself: 1. A deadband. If the gap is under 2.8 hundredths of a percent, nothing moves at all. Noise is ignored, and the profit that such a move would have cost stays in the pool. 2. A capped step. Right after a touch the next move is at most 0.12%. The cap grows to 0.48% if the pool has not been touched for an hour. In a fast chop the pool does not thrash; after a calm hour it takes one proper step. 3. The pool has the final say. Whatever the navigator proposes, the pool first clamps it into a ±20% corridor around its own price, and only then walks toward the target, one fifth of the gap at a time, exactly as before. The navigator does not touch fees at all, it is bound to this one pool, and the DAO can unplug it in a single transaction. What else is in the same vote Moves have to be paid for, so the economics are adjusted alongside: - the fee in a balanced pool goes 1.46% to 1.28%, so ordinary trading gets cheaper; - the maximum fee goes 1.70% to 3.28%, and it ramps up faster as the pool gets more imbalanced, so pushing the pool around costs more; - the share of profit that is set aside and not spent on moves goes 30.101% to 36%. What it changes Michael Egorov's stated goal is to roughly double the average APR without making the peg any less safe. YieldBasis puts it the same way in its own announcement: better liquidity handling and a significantly higher trading APR, with the other BTC pools to follow. Status Both votes are open and neither is executed: the pool still runs the old parameters and the navigator is not attached. nitter.net/yieldbasis/status/2086…