What is a Pie?
Pies are the products of PieDAO. They are tokenized indices, baskets of assets represented with one easy-to-manage ERC-20 token. All pies are fully backed by the underlying assets, redeemable at any time. Pies can be built either as Balancer Smart Pools or PieVaults.
In the case of Smart Pools, the tokens are used in an automated market maker which maintains their set percentage allocation as users interact with the liquidity pool. Swap fees from interactions with the pools are gathered for pie holders, constantly growing their balances. What is a PieVault? PieVaults can be seen as the next generation of PieDAO products. Instead of being fixed percentage AMMs, PieVaults actively employ each of the underlying assets with a yield-generating strategy.
Strategies employed can be staking, lending, and much more. PieVaults bounce between strategies, maintaining the highest possible yield as rates fluctuate.
Profits realised by the PieVaults active strategies accrue to the token, requiring no action and incurring no gas fees.
The first PieVault was YPIE, providing complete exposure to the Yearn Finance Ecosystem. USD++ is the second PieVault, engaging in five stablecoin farming strategies and netting holders a predicted passive 18% APY.
PieVaults can be staked for double yield as part of our liquidity incentives program.