@alexander Yield from this vault should have no correlation with Hegic’s token value. Hegic would be deposited by existing Hegic holders and this strategy would be used to secure staking lots.
Staking lots earn wBTC and ETH from options settlement fees. This would be used to purchase more Hegic.
The current vaults we have are a mix of stablecoins, but then also volatile assets like ETH, BTC, and LINK. We are currently in process of making a SNX vault as well. As such, I’m not certain this claim is true.
The goal of this vault is less to compound HEGIC tokens as it is to enable folks to get in on that ETH/BTC yields from the settlement fees. The token is just the method of value capture, and I proposed compounding it so that the vault would gain more funds with time.
It could be possible instead of create a vault akin to the current YFI vault logic (shoutout to @banteg here for that brilliant strategy) - taking the farmed ETH and wBTC and throwing it into Uniswap to farm UNI. That would reduce the exposure risk to HEGIC, but would potentially dilute the compounding nature. Whichever method is more profitable won’t be known until after the platform is released and we get about a week’s worth of yield data.
That clarifies a lot for me, thank you! This makes sense.
It doesn’t sound like there is much of a downside to creating this vault, what do you think would prevent it from being implemented?
As for the stable crypto assets, I should have said battle-tested, that is a better word for the meaning I was trying to get across. ETH, BTC, LINK, and SNX are volatile but they are battle tested.
This is a great proposal.
Also I am all for compounding rewards for this vault. Compounding opens up the opportunity for further rewards and also doesn’t damage the underlying token (and the Hegic in the yVault!) by placing unnecessary sell pressure on the market.
Love the work you have done on Hegic pools so far! But maybe there is a way it could be brought into the Yearn ecosystem under a v2 vault to The benefit of both projects?
Benefit to Hegic: Good exposure through yearn, benefit from vault design and security, future audit counsel, etc
Benefit to yearn: new vault/strategy for a promising options protocol, your involvement in the community
Thoughts?
We should give it a few weeks to see if there is any issues with the revamped HEGIC protocol. If all goes well, then we should definitely launch this vault.
I strongly support Yearn implementing this new Vault. It follows one of the principles of Yearn:
As I understand it, this is basically a Pooling Vault, i.e. it allows to pool the assets from multiple stakers so that it can reach the required amount (888,000) to get Hegic Staking Rewards. Measured in HEGIC, you either stay the same or increase your amount.
This is an easy way of continuing attracting TVL to the Yearn Ecosystem. Yearn should be able to implement these vaults faster, as the time where it makes sense may be limited.
Yup, this vault/strategy is currently being worked on by @mattdw and others—should be ready for a YIP relatively soon
Sweet. I am totally going to use this vault. And hopefully down the road the vaults can buy HEGIC options as an auto-hedging strategy to limit the downside of ETH or wBTC. That would be a truly set and forget type of investment. Options are going to be a game changer for DeFi if done right.
I think we’d be better off creating our own options platform, because the person behind HEGIC has shown time and time again to be both incompetent and irresponsable. If anyone / any group wants to do it, he/they should first create a thread on the forum, and then request funding through yDAO: yDAO for Community Funding
Maybe it could eventually have futures and perpetuals too, and after it’s deployed on mainnet it could also be deployed on xDai, Matic and the two optimistic rollup chains.
A lot of warning bells go off for this project, if you follow it closely like @ProjectEqual and @avidaardvark . Do we really want to put millions of dollars into this?
https://twitter.com/0mllwntrmt3/status/1316431236236271616?s=21!
Furthermore, just look what happened with hegic v1 liquidity providers 4 days ago. Early liquidity providers put ETH into the pool. Then when v888 was released, 100% of those funds “disappeared” since the the UI to retrieve funds was gone and no migration to v888 was ever done. AFAIK no LP for v1 liquidity has been able to retrieve funds, so you can consider user funds lost as of right now.
Extremely sloppy project with an unhinged sole dev. I agree with @laur_science that this seems like something yearn should build ourselves.
Was just linking this! haha. Yeah v1 funds can be retrieved and are not lost.
Yes Molly is an anon dev and can lash out, but I honestly think a lot of devs in this space are feeling the same way, just being a little more diplomatic about how they message this.
All DeFi is risky business (even Yearn has had vulnerabilities found by samczsun!). I think the underlying issue is that money flows around DeFi waayyyyy too loosely. And this has all resulted in a very hostile environment for devs since August. There is a very small chance at upside for them (speculative project has to work and succeed) and despite all of the warnings and cautions they take, people are reckless and ape into these things, and if they fail they attempt to hold devs accountable.
It would be great to see a community like yearn help support some of these projects and help support Molly where we can, especially if we are going to create a vault utilizing Hegic (like the yAudits that has been discussed helping these projects we might create strategies with).
Hegic has a cool and novel product with its bidirectional LP for writing options against. Unsure we need to build everything ourselves, let’s grow this space in a safe and collaborative way where everyone wins 
@ShadeUndertree Thank you for the link.
There is a very small chance at upside for them (speculative project has to work and succeed) and despite all of the warnings and cautions they take, people are reckless and ape into these things, and if they fail they attempt to hold devs accountable.
Exactly, the dev is warning us, with MANY CAPS and explicitly said they don’t care about us or if our funds get lost. So why are we ape-ing into this and putting yearn funds at risk? Just look at the warnings. We are no better than the FOMO ape-ers if we ignore warnings.
- R U READY 2 LOSE 100% OF UR MONEY IN @HegicOptions POOLS 2DAY?
If the answer is no, we should NOT put yearn funds at risk.
can u cope with a situation of me leavin’ Hegic? coz this “tired-of-buidlin’” tweet could b a real one. who would u call? police? lawyers? tired people’s association?
Millions of yearn dollars should not have a key person dependency. It’s fine if Molly wants to leave, but we should not put yearn funds at risk without a succession plan or at least other devs who can help yearn if Molly leaves.
This project is not ready for prime time. How can you justify the chance that we lose user funds?
I think everything in DeFi including Yearn should have the exact same warnings, disclosures, and ALL CAPS. Even still people will try and blame Andre or some other developer for FOMOing in. There is nothing safe about putting money in a smart contract and It should be known to all that you will most likely lose all funds deposited into any protocol.
Let’s not forget that samczsun also found critical bugs in Yearn (multiple times) that put user funds in danger. It’s a good thing that he has his attention on Hegic and was able to find this, and Molly quickly fixing it should be a positive takeaway. No protocol is immune to bugs.
Also let’s face it, crypto communities are very toxic and developers handle them in different ways. Molly takes this approach and Andre takes another (stepping away from twitter). As long as the code is open source & audits have been conducted we can try to minimize these risks.
Yes samczsun is a great resource for the greater good of DeFi. It would have been awesome if yAcademy had been able to lure him to work with us, but it seems that he is still doing his thing.
I have full support for yHegic vault, and I think it’s not the mission for us to create the fundamental protocol here at Yearn. We can do our best to work with others and make money at the same time, that is what yHegic is for.
Yes…we need to support good projects where it makes sense. Its going to help grow the network effect of yearn in the long run. There is so much to build and do in defi that its not a zero sum game. Also given that defi is such a new space…its important to have a health attitude towards risk. Its unfair to demonize the devs for the bad stuff while trying to ride only the upside…
