Popcorn is a DeFi wealth manager offering exposure to liquid strategies that not only earn yield on crypto assets, but also fund community-selected charitable organizations at no additional cost. With the debut of Butter, Popcorn’s yield optimizer offers diversified exposure to a basket of yield-bearing stablecoins, users can now feel good about depositing their crypto into an ESG-conscious product that aligns financial well-being with creating positive global impact. We believe it is crucial for financial advisors and professionals to understand and advise on how their clients can utilize crypto assets and decentralized financial products to best meet their needs and goals in the digital age. This article will detail the design and utility of Popcorn’s first DeFi yield-generating product, Butter.

Butter is a yield optimizer that automates yield farming associated with a basket of tokens determined by PopcornDAO. The current composition is backed by FRAX, RAI, alUSD, and mUSD. Butter was created to allow users to pool resources and save on gas fees 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 manner. Most importantly, Butter helps benefit social and environmental causes by automatically allocating a percentage of fees to impact organizations around the world.

Popcorn’s elected beneficiaries will receive a percentage of Butter’s streaming fees to aid their philanthropic efforts. Eligible beneficiaries include nonprofits, charities, and grassroots projects working toward environmental, educational, open-source, and reduced inequality initiatives. Thus, Butter not only allows users to optimize yield on stablecoins, but simultaneously fund nonprofits and social impact organizations at no additional cost to the user.

Butter has been designed with safety, security and interoperability in mind. The product’s batch minting and redemption contracts have been audited by Zokyo with functional assurance provided by Popcorn’s incentivized bug bounty with ImmuneFi. Additional 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, alUSD, and mUSD. 

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%

Butter is accessible via Sweet Caramel, Popcorn’s native application. Current functionality includes:

• Minting Butter to optimize your stablecoin yield. 
• Claiming and staking Butter to earn POP rewards.
• Staking POP to earn POP rewards on Ethereum and Polygon
• Staking POP-USDC LP tokens to earn POP rewards on Ethereum and Polygon
• Minting, claiming, and staking 4X, a non-USD stablecoin yield optimizer (coming soon)

Popcorn stands as a first-generation bridge between traditional and crypto ESG strategies. With their cutting-edge approach to ESG strategy design, Sarson Funds anticipates that Popcorn’s model will inspire a migration to decentralized ESG products for alternative asset managers seeking to align themselves with the global shift towards decentralization and sustainability.

For more information on Popcorn, please visit https://popcorn.network/.

Disclosures: Not investment advice. It should be assumed that Sarson Funds or its affiliated managers hold positions in all projects that are discussed. It is not possible to invest in any project directly through Sarson Funds, Inc. or its affiliated managers. Any investment product offered by managers affiliated with Sarson Funds should be assumed to be only available to Accredited Investors and subject to the individual terms and conditions of that offering including but not limited to those eligibility requirements associated with U.S. Securities Regulation D, section 506c. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at [email protected]