Distribute vested CRV to yyCRV LPs, liquidate the vested CRV and give out as dividends to YFI holders, use vested CRV to vote lock 4 years and give yVault a 2.5x CRV generation boost.
As mentioned in this tweet; https://twitter.com/iearnfinance/status/1294872078462717956 , yVault currently has 609,687 CRV vested with 1670 CRV linearly releasing each day. As this strategy is not codified there needs to be manual intervention. All manual intervention should be dictated by YFI holders.
Option 1: Create a new rewards contract that receives vested CRV daily, LP’s to the yCRV yVault can stake their yyCRV and receive additional CRV.
Option 2: Liquidate vested CRV daily and provide funds to treasury and dividends to YFI holders
Option 3: Use the CRV via YFI governance (giving CRV voting rights to YFI) as well as boost yVault CRV generation by 2.5x (greatly incentivizing deposits which further increase fees and dividends ~ essentially increasing daily rewards by 2.5x) - (this one is my personal bias)
This is just a signalling request to see what the community is leaning towards. I think we should implement off-chain vote signalling, after we see how the forum poll goes we can further decide on this.
This is awesome. 3 all the way. Thanks Andre. Curve is such an important part of yearn. Being part of their governance and getting 2.5 multiplier will ensure the continued symbiosis and success of both projects.
At some point, I can imagine that the vaults will earn more than enough CRV needed for governance (kind of like the yearn treasury) and then the decision should be between option 1 and 2. I favor 2.
By the 28th, hopefully the price of CRV has gone down and stabilized enough for the 2.5x multiplier to make it worth holding onto rather than selling it and putting it in the hands of the treasury and YFI holders.
Option 3. This will significantly increase fee revenue from the avalanche of deposits. Future for YFI token holders lies in fee generation since supply is so low. This will drive YFI price in addition to providing revenue for holders.
Is option 3 giving the right to vote to any CRV holder? If that’s the case isn’t that too much of a risk since both protocols interests don’t have to always be aligned and that’s a conflict of interest that could cause problems in the future for us.
Yea I think most people who had liquidity in the yCRV vault were under the impression that they were farming CRV pre-launch as well, I certainly saw quite a few people ask if they would receive CRV in the yVault and they were told ‘yes’.
I’m all for the long term vision for YFI but voting on this for pre-launch CRV would mean people are getting a say on what to do with the CRV farmed that they perhaps didn’t contribute to.
Let’s say that people agree on participating in CRV governance for the 2.5x extra reward distribution:
How often will the vested CRV be deposited into the CRV governance pool? everyday, weekly, biweekly?
Just curious on if there’s going to be some kind of schedule to follow this proposal.
I agree. LPs of yVault prior the snapshot of veCRV distribution were the ones that brought these veCRV in at the first place (alongside Andre developing the means to do so). Yet, none of the three proposed options emit such unlocked veCRV to them.
Meanwhile, in terms of governance, Option 3 is very tempting I must say.
Hence, I would suggest splitting 50% of the CRV to Option 3, as to encourage ecosystem growth, while distributing the another 50% to LPs of yVault prior the snapshot according to both LP proportion and time weightings, as a gesture of fairness.
The 3rd option is a way for the protocol to start of with a capital asset. In that we have CRV right now that we can deploy into the Gov contract to increase the yield in CRV. This at market value is 3 Million. We could use this for the addition fees for now but if say Balancer value and fees or fees on Uniswap are more attractive, tokens like these CRV, BAL, COMP, AAVE could find a way to distribute portions of these to build pools that just continue to make fees and other reward assets as well for yearn. Anyway my point is this is potentially a great start to build other holding assets that provide liquidity and just generate income.
Like others writing above, I’ve seen many yVault investors get told they’d receive their pre-launch allocation and that “Andre is working on it”, at least in the Curve telegram group. Giving it to current yVault LPs, either directly or via the lock-up mechanism, is a betrayal of their trust. We’ve already appropriated some BAL for governance simply because it was not cost effective to distribute, but here we’re talking (nominally) about millions.
There is a real risk of reputational damage if yearn governance comes to be known as a group that help themselves to customers’ funds when the opportunity arises. I believe none of these three options matches the ethical standard we should be striving for.
Who was telling yCRV LPs they were going to earn CRV from the yCRV vault? afaik the only guaranteed reward was more yCRV, and the only place you can farm CRV is through Curve, as stated by them on their medium posts.