The Proposal Makes complete sense to be Honest . Now It is also a question of What kind of projects Yearn wants to support . Andre being a single Dev Himself should appreciate such projects. Decentralized options is an audacious attempt and its working as a proof concept , Yes there have been some small HICCups along the way which everyone goes through but overall the product seems to be working fine . Its a larger choice to support decentralized , good projects which are potentially game changing or supporting copies of old models but just on the ethereum chain .This is a radically different model and therefore yearn should support these projects . Both BE a liquidity provider , options purchaser and Yhegic .
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One of the best proposals IMO,
The rewards are not dependent on the price of a Farmed token but on the succes of a platform.
Yearn itself only act as a pooling agent to obtain a staking lot. Even if Hegic still needs to establish itself, the vault would only allow $HEGIC deposits which means the users of the vault are already aware of the risks the platform presents. Hopefully, this strategy could be replicated with other projects as I think it opens path to a new kind of users for Yearn.
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At face level, I think this proposal makes tons of senseâ and itâs the kind of proposal that could work with lots of other staking tokens. Pooling our resources to save gas works as a win for everyoneâ very similar to the basic ideas for the SNX vault.
My biggest concern with doing something like this is managing the Yearn brand. I think @mattdw is very wise in being open to waiting a few months and seeing how smoothly things go when the Hegic platform has been up and runningâ the platform doesnât have the best track record, and for better or worse, if Yearn hosts a vault for another token this is likely to be seen by many as Yearn endorsing that product. If Hegic has another bug and funds are lost (or perhaps something happens with the token, in terms of a price collapse) this could damage trust in Yearnâs ability to only select good products to âinvestâ in.
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This is very different from Yearnâs other vaults which deposits collateral to Aave -> Withdraws stable coin -> Farm
This proposal buys Hegic tokens with deposits Users deposit their own Hegic tokens -> Hegic staking pool -> earn fees
Itâs a good proposal but will lose $$ if HEGIC tokens go down.
EDIT: I misunderstood the initial deposit
what do you mean buy Hegic? Users deposit their Hegic tokens and their goal is to get more Hegic tokens.
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I stand corrected. So basically this is a pool to get users to the minimum 888,000 Hegic for a staking lot.
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Hegic is deposited but staking rewards are paid out in ETH or WBTC.
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Exactly that. Even at reduced price of $0.06/HEGIC, that is ~$53k per lot. Far beyond what an âaverageâ user will be able to scrounge up. This proposal is basically to allow more users to participate in staking without having the full amount - kind of like how RocketPool is designed to let users stake ETH without having the full 32.
Sidenote: at these current prices, itâs ~5x easier for a user to stake ETH 2.0 than it is for someone to stake HEGIC. 
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I am FOR. I have been thinking about this for Hegic but also for Ren (requires 100,000 Ren, currently costs around $22k - getting a DAO to run a darknode might be a bit more involved). And there are other tokens that have these games built in, e.g. for Eth 32 was the magic number for a while.
This could also be carried out for SNX too because for anyone with less than $20k SNX the Eth gas fees mean that itâs not worth minting sUSD and claiming SNX rewards, and instead it makes sense to deposit SNX on Celsius.
Way ahead of you 
Though my strategy proposal came after a SNX vault was approved.
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I think this makes a lot of sense as it would create a symbiotic relationship with their protocol and Yearn.
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This is indeed a great idea, there are lots of hegic users who want to stake but couldnt!
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Maybe we should also consider a NEST protocol vault.
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We absolutely should do this. Would love to park some of our extra HEGIC in this vault.
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Yes, this is a great idea! I too would want to park some Hegic.
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Hi people
I am currently developing a pooled staking contract which accepts HEGIC deposits and automatically buys staking lots, distributing profits to HEGIC depositors.
Let me know how can I help.
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Do people feel comfortable enough with the sole anonymous developer behind this project? Generally it is better to have more than one person working on an enterprise and also this developer has shown some negative personality traits online like being arrogant. Arrogance is not a good trait in someone who is starting a company - if you wonât listen to anyone else, your company is at much greater risk of failing. I have seen it happen many times. I think these are all concerning things.
I think this is pretty risky and if the whole thing goes south and the vault loses a bunch of money, it could negatively impact Yearnâs brand.
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whatâs the next steps for this? 10/10 launch is coming soon.
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Unfortunately until we have a public release of the 10/10 code Iâm not certain thereâs much work that could be done. We could submit a YIP to Snapshot, but we couldnât start writing the code for the vault until the contracts are live.
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Echoing this. Options can be used to mimic insurance, but come with risk profiles that differ from many insurance products. @mattdw
Aside from that, while Hegic is a promising project that Molly (the founder) has brought very far, this is a very directional bet that I feel doesnât match the current goals of yearn. That is: this vault is too focused on the price of the asset rather than the yield it can earn.
My concern with this vault is the price risk associated with the token and if the volatility of it would have a matching yield profile. If the staking lot is earning a lot, it may be worthwhile.
The current vaults are denominated in more stable crypto assets like ethers and stablecoins, so if yield drops in the strategies those vaults are allocated to, there would be more avenues available to build strategies from. For this proposed vault, it seems the opportunity for yield is concentrated within the project itself.
If more projects integrate this token for this proposed vault, I think it could be a viable strategy. But for now, the price risk and earliness of the project doesnât make it a good candidate for its own vault quite yet.
I do think Hegicâs hedge contracts can be utilized as strategies for the ether/dai vaults, which could eventually lead to its own vault like the one proposed here.