I think a bounty system, with capped rewards for strategy providers may be a better route. sounds very promising though.
While benchmarking the base borrowing rates of COMP/Aave, utilizing a high-water mark on AUM is preferred; for when qualifying performance fees, to avoid double counting of fees in the event of dips?
The vault will continue to optimize for the highest yield stable coin strategy continuously. At time of writing anything between ~10% - 95%
Although the structure of yVaults is such that the amount of LINK collateralized would not decrease; during periods when a strategy does not manage to outperform the debt, total fund value can decreases in value, and continue to accrue USDC debt.
While the LINK deposited can’t decrease, the debt can increase. If a strategy does not manage to outperform the debt, then a portion of LINK will be impermanently locked.
Instead of a fixed performance fee on interest earned, by ensuring that only gains above an ever-rising tide of a high-water mark (HMK) on AUM, will have the performance fee applied, as per best practices of hedge funds, which will be in favor of the interests of yVaults’ investors.
A high-water mark both protects the fund’s investors from double fees and motivates the fund’s managers to perform well, in order to earn fees.
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I would be interested in seeing how we can move forward with no inflation.
I believe with the launch of Vaults, we will see enough fees generated to cover ops costs (hopefully including being able to compensate Andre).
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+1 to model 1, a great way to capture value of yearn ecosystem with yfi.
I really like the idea of entrance and exit fees.
It encourages stability as it disincentive for pool hopping.
Also, it is easier to calculate and implement compared to AUM based fee systems.
Good thoughts!
Expect a surprise from Binance 
Finance = Binance
To come tell us of a binance listing? 
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For exit fees, scale down over time, for example:
<7days 1%
7-30days 0.75%
30-60 days 0.5%
60-90 days 0.4%
90-180 days 0.3%
180-270 days 0.2%
270-365 days 0.15%
Over 1 year 0.1%
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@anderson
How did you model the additional APR to LPs. It is a function of YFI inflation. How much inflation did you assume?
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Closed since inactive. Feel free to reopen if this topic is still relevant.