Yearn Governance Roundup #4
Week of October 12, 2020
Welcome to the Yearn Governance Roundup — a weekly newsletter covering everything in the Yearn Governance pipeline.
📋 Quick Hits
- Follow the Yearn Governance Roundup publication
- Unpacking my involvement in DeFi by Andre Cronje
- Yearn State of the Vaults #3
- Yearn Finance Newsletter #6
- You can now claim governance rewards using a community-built front-end.
⚖️ Proposals and Discussions
Make sure you join the governance forum if you want to get involved with these discussions! Table of contents:
- Strategy Proposal: Curve — 3pool (curve.fi/3pool LP)
- Create a yHEGIC vault
- [Proposal] Yearn’s First Ever Community Call
- Bonus: Yearn Financial Reports
Deepcryptodive shared this proposal in September. Here’s the summary:
Open a new Vault: “curve.fi/3pool LP” and allow deposits of 3Crv tokens.
These can be used to automate CRV farming, similar to the Curve.fi 3 y, busd and sBTC LP Vaults. Additionally, other Vaults (e.g. yETH, yDAI, yUSDT, yUSDC) could plug into the same strategy.
Enabling boost on this strategy would further increase rewards, especially with the veCRV incentives 8 coming up.
This strategy was proposed back in September and is finally live! Since its launch on Oct. 12, the curve.fi/3pool LP vault has attracted 2,117,025.48 3Crv tokens — yield data is to be determined. You can access the vault on y.finance/vaults until it is merged onto the main site.
mattdw shared this proposal in Sept., but it has recently picked up steam. Here’s the summary:
Create a yHEGIC vault to buy stake lots and participate in governance.
Should this proposal be implemented, a yHEGIC vault will be created and used to buy stake lots on the HEGIC platform. The generated fees would be used to compound by buying more HEGIC.
A little background: Hegic is an on-chain options trading protocol on Ethereum. Hegic also has a native governance token (HEGIC). The token’s main purpose outside of governance is for use in “staking lots.” By staking HEGIC tokens, stakers earn fees generated by the platform during options purchases. However, the number of tokens required to purchase a lot is quite high and outside of many users’ reach — locking them out of the opportunity to participate.
Should this proposal be enacted, a yHEGIC vault would be created. This vault would accumulate HEGIC tokens from users’ deposits until enough has been acquired to purchase a staking lot with spare HEGIC tokens remaining. Stake lots will be purchased to achieve exposure to all asset types (at first ETH and BTC), starting with ETH. Once all asset types are achieved, the vault will buy new stake lots based on whichever will achieve the highest ROI.
There’s quite a lot going on with this strategy and it requires some prerequisite knowledge of Hegic — I recommend reading the proposal in full! The vault code is currently under review by Yearn core devs.
bearhead shared this proposal on Oct. 15. Here’s the summary:
Host a community call (similar to a corporate shareholder meeting) with the core team with the agenda described in the Specification section. The call will cover state of the protocol, notable recent changes, big upcoming changes, and Q&A from the community (voted on by the community before the meeting). It will be live streamed.
I wanted to feature this proposal not because it’s gaining traction, but because a few people have asked for such calls and now is a good opportunity to address this desire.
Here are some points worth considering:
- Yearn is not a company in a traditional sense — not even close. It’s an evolving group of individuals that pick up on inefficiencies where needed.
- The core team is exceptional, but small. They are focused on building tools that manage millions of dollars and they are not focused on community management.
- Social outreach and communications have been dramatically improved over the past few months, I’ll provide a list below!
- If you see something that needs fixing — go for it. No one is going to stop you and we welcome help from all corners of the ecosystem.
If you want to actively keep up with Yearn, please considering following this newsletter, the official Yearn newsletter, the State of the Vaults newsletter, and the YFI Daily Pulse. That’s four recurring newsletters!
In an effort to improve transparency, Banteg and CEO Klim created a first version of Yearn monthly financial reports. Find them here.
Monthly budget reports use following categories for columns:
harvestcalls and transactions from/to treasury contract
rebalance- token swaps (including vaults) that don't leave multisig wallet
airdrop– donated or seized tokens transactions
grant– grants or reimbursements
payment- payments for specific deeds, e.g. audit, conferences
help- help with stuck tokens
none– wallet non-leaving transactions, e.g.
💵 Treasury Update
- No notable transactions to report this week.