The USDC Savings Vault (USV) was a product built to provide low risk yield to USDC holders. It was conceptualised out of our own need to manage our treasury assets and ensure we were receiving a competitive yield. USV is a tokenised zero coupon bond fund built on top of Notional’s fixed rate lending and borrowing market. It enabled DAOs to access competitive fixed rate yields without needing to worry about rolling their positions at the end of each maturity.
Overall, the product delivered on the objectives it set out to achieve but never gained a huge amount of traction due to higher yields on offer elsewhere. We underestimated the willingness of DAOs to take advantage of higher yield opportunities, that also carried more risk, and the stickiness of the capital earning yields lower than USV.
Notional has just announced their plans to deprecate the v2 version of their protocol upon which USV runs and we will therefore be sunsetting the product over the next two months.
Timeline
Below is a rough timeline of events related to the planned winding down of USV. This timeline is subject to change. Any changes will be accompanied by notice to ensure that users have sufficient time to take any necessary action.
March 25th 2024
- Minting USV will be disabled on the Phuture website
April 25th 2024
- USV will be removed from the Phuture website
USV holders will always have access to their funds regardless of when they decide to redeem their tokens. That said, we advise USV holders to redeem their tokens before March 25th 2024 for best execution, as this will coincide with the date that Notional start to migrate liquidity from v2 to v3.
Once USV is no longer available through the Phuture website users will be able to redeem their tokens directly through Etherscan. Instructions on how to do this will available in our docs within the “Deprecated Products” section.
Please reach out on the Phuture discord if you have any questions about the sunsetting process or require any other assistance related to USV.
Phuture Team
