Yearn Finance yNewsletter #68
Welcome to the 68th edition of the Yearn Newsletter. Our aim with this newsletter is to keep the Yearn and the wider crypto community informed of the latest news, including product launches, governance changes, and ecosystem updates. If you’re interested in learning more about Yearn, follow our official Twitter and Medium accounts.
Summary
- yETH Bootstrapping Heats Up as 8 LSTs Battle for 5 Spots
- We Challenge You to Hack Yearn’s V3 Vault…for $20,000.00
- Updates on Velodrome’s Boosted OP Vaults (inc. Wido Zap Support)
- New lp-yCRV Pool, and New Vaults ft. yLQTY, Sonne, & MAI
- Yearn Highlights from ETHCC Paris
- yAuditDAO yAudits V3 Vaults, engn33r’s insight at BlockSplit 2023, and yAcademy pointers
- The OATH Foundation discusses empowering DeFi with Yearn
- Yearn Stats, courtesy of Yearn’s Budget Request GitHub
- Community and Ecosystem News Feat. Scraping Bits Podcast & Jackson, StaFi, Messari, Synthetix, and Inverse Finance
yETH Bootstrapping Heats Up as 8 LSTs Battle for 5 Spots
yETH Bootstrapping is well underway, and with Deposits now closed, st-yETH holders are encouraged to submit their votes among the first 8 LSTs who are competing for yETH’s five available spots. Voting with your st-yETH is required to receive your share of ~ $9,484 in incentives, so do not miss this window.
yETH’s 8 whitelisted LSTs make up 96.7% of the LST Market.
The stakes are exceptionally high because the first round of LSTs have a unique opportunity: Of the top 5 LSTs, one LST can constitute up to 40% of yETH’s total composition.
With the total ETH deposits at ~2,090+ETH (at the time of writing) and a net value of ~$3,800,000+USD, a 40% share of yETH benefits to the winning LST’s protocol is significant.
Then, consider yETH’s st-yETH benefits: rewards from the basket of the 5 LST’s own respective protocols’ underlying strategies, native Yearn auto-compounding st-yETH structure, the incentivizing voting system, and the prospects of yETH’s future utility in the larger DeFi ecosystem. It’s a mouthful, we know, but we hope it all adds up to provide a mutually beneficial outcome for st-yETH voters and the LST protocols who have taken this trip with us. We think it will.
This is one block party you don’t want to miss, and all the cool kids are going. However, we understand that life happens, which is why yETH is hosting this party every epoch (month).
The race to incentivize was quite spicy in the last 7hrs, with total incentives nearly tripling. The Team even identified some failed last-minute incentives txn’s attempted that just barely missed the deadline.
If you missed participating in this round, or were not selected as one of the Top 5 LST’s, do not despair! You will have an opportunity to resubmit and try again in the next epoch. Each epoch provides the chance for st-yETH voters to add, or not add, one additional LST to yETH’s composition. Plan your incentivization strategy and vote accordingly.
We Challenge You to Hack Yearn’s V3 Vault…for $20,000.00
Bring it on! While the renowned cheerleader movie by the same name is cool, it’s not “$20,000 to Rug Yearn’s v3 Vault” cool.
Crypto Twitter has some serious talent, so we’re inviting you all to participate in the heist of the decade. Get your Team together, or attempt it solo. Show us what you’ve got to hack our v3 Vault, and all $20,000 wubba lubba dub dubs are yours. ZachXBT get-of-jail-free card pending.
In all seriousness, and in light of the recent events of this week’s CRV/ETH exploit, we want to remind everyone that security is always Yearn’s first and number one priority.
To find out more about Yearn’s security, see this thread by Yearn contributor, Storm:
Updates on Velodrome’s Boosted OP Vaults (inc. Wido Zap Support)
Don’t sweat it, Anon. We’re here to remind you to check your OP Velodrome Vault deposits to make sure you’re taking advantage of all those boosted yields.
Thanks to Wido, you can now zap any token into Velo V2 Vaults without getting winded, so you can also put those yvOP rewards to work…in tandem. Claim your yvOP Boost rewards and then redeposit those rewards directly into your Velo Vault of choice — without removing your staked yVault equity!
New lp-yCRV Pool, and New Vaults ft. yLQTY, Sonne, & MAI
REMINDER for lp-yCRV users to migrate. Zap to easily migrate to the new lp-yCRV pool so you can continue earning those sweet CRV emissions and yield. Did we mention that this new pool’s composition makes yCRV eligible to be used as collateral?
Holding LQTY? Deposit it into yearn’s new yLQTY vault to earn boosted rewards on top of LQTY’s own fee and reward structure derived from issuance fees and redemption fees. Liquity is a decentralized borrowing protocol that offers 0% interest loans and a 110% Collateral Ratio. Check out this video from Ceazor.eth, who describes the Vault’s functionality.
Sonne is a native lending protocol on Optimism. Yearn has increased it’s allocation to Sonne, continuing to foster growth amongst protocols in the Optimism ecosystem. If you’re a holder of Sonne, we invite you to put it to work on Yearn’s new Velo Sonne-USDC OP Vault.
Mai Finance offers a borrowable stablecoin collateralized by a mix of cryptocurrencies. Deposit MAI into Yearn’s new yvMAI vault on Optimism to earn OP-boosted yield.
Yearn Highlights from ETHCC Paris
The War Room Games hosted by yAuditDAO and TenderlyApp were a smashing success! Congrats to the first-place winners, @drdr_zz, from Composable Security, and to the other Team16 members: @cairoeth, @dgrabec, @danielvf. Great hacking!
Speaking of smashing successes… Pods and Yearn had a blast at the Smash Bros Tourney. Rumor was, “Ness isn’t a kid.”
yAuditDAO yAudits V3 Vaults, engn33r’s insight at BlockSplit 2023, and Academy pointers
yAuditDAO yAudits Yearn v3, and the results are readily available for your reading pleasure. The report is robust, with noted issues addressed and changes made by Yearn’s team. Special thanks to yAudit’s auditors, Adriro and Panda for their hard work. Excerpt:
“Overall, the codebase showed good quality and a thoughtful approach towards smart contract design. Some areas, like the tokenized strategy proxy design, were quite unique and showcased an innovative approach towards on chain gas deployment limitations. The tokenized strategy contract also provides a single yield source ERC4626 compliant token, which adds additional functionality for users.”
Check out a “behind the scenes” perspective from yAuditDAO’s @bl4ckb1rd71 (aka engn33r) as they share some smart contract security knowledge at BlockSplit 2023! engn33r is an active Security Auditor at yAcademy. The video is informative, diving into how/why Web3 security “audits” are not traditional “audits” and also highly variable in context/content.
Check out yAcademy’s list of Common Web3 Security Issues! The abridged tips read like a Web3 security auditor’s version of Cliff Notes — easy to understand and comprehensive.
- Need a best-in-class Security Audit for your protocol? Submit an inquiry to yAuditDao here!
The OATH Foundation discusses empowering DeFi with Yearn
Yearn’s Corn and the OATH Foundation discuss yETH, V3’s composability + tranche architecture, and yAuditDAO. The questions and discussion facilitated by OATH in this interview provide listeners with solid content applicable to Yearn and to the rest of DeFi as well. OATH Foundation’s stated mission is “to foster an ecosystem of transparency, inclusivity, and community-driven decision making, empowered by cutting-edge technology.” As OATH’s presence continues to evolve in the space, we wish them success in their growth and in maintaining their mission. Great interview.
Yearn Stats, courtesy of Yearn’s Budget Request GitHub
The following statistics are provided for your convenience, sourced from information provided during the first week of July. All data points can be found in Yearn’s Budget Request GitHub, and are publicly accessible. We believe in transparency, and we believe in Yearn.
🔹 Optimism TVL has been ~ $18-$20 million.
🔹 V3 Vaults: ~25 partners have expressed a commitment to building on Vaults V3.
🔹 June billing for yAuditDAO: $158,500.
Community and Ecosystem News Feat. Scraping Bits Podcast & Jackson, StaFi, Messari, Synthetix, and Inverse Finance
Love for Yearn goes beyond being the most callipygian protocol!
This month, we’re excited to share this Podcast from “Scraping Bits” with our readers — featuring an interview with yAuditDAO’s whitehat, Jackson! Listen in as Jackson discusses his ambitious endeavors and successes, while sharing some of his personal experiences with Yearn.
StaFi discusses why they are keen to have their own LST, rETH, to be featured as one of yETH’s five initial LSTs. Their Abstract on their DAO’s discussion forum, “yETH: Supercharging StaFi’s rETH With Index LST’s”, does an excellent job conveying the benefits of rETH’s inclusion in yETH. StaFi’s Abstract is a great resource if you’re considering including your own protocol’s LST in yETH’s next application round after the current epoch.
Messari explores Yearn’s yETH and V3 in their Weekly Recap edition on July 7th, offered to their Pro Members. Messari is a “one-stop-shop for all your crypto data and research needs”.
Synthetix has reactivated eight new futures markets that will go live on Optimism! You will soon be able to trade YFI perps!
As described in their excellent new release video, Inverse Finance now offers another way for you to earn additional yield on your st-yCRV. Via their FiRM lending protocol, you can use st-yCRV as collateral to borrow DOLA. As always, track your lending positions carefully to avoid liquidation!
The Future of Finance won’t belong to anybody, but everybody.
Source: https://yfistory.org/images
We hope you’ve enjoyed reading this month’s yNewsletter. Remember, you are Yearn, and all of us can contribute to help create the changes we want to see. If you want more information (or just want to say, Hi!), we hope you’ll visit us in our Yearn community Discord and Telegram channels!
