I go back and forth with this but tend to agree with you. While I would love more strategies, I also think there’s enough to build and improve on the existing strategies.
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Against. Users do NOT need yearn to farm UNI. What’s the point of creating a vault where users have to pay a fee to farm UNI they could have farmed themselves ? The whole point of yearn is yield made easy, but you guys are asking users to juggle between vault and basically do the job yet they STILL pay fees.
I’m all for UNI farming, but it should NOT be new vaults. Instead, we should allocate a part of the stablecoin vaults and a part of the ETH vault to farming UNI and split the rewards and impermanent loss between the ETH holders and stablecoin holders. When price movement tilts the balance in favor of one coin, it would be used to buy the other coin.
You guys are forgetting the long term vision : we want yearn to be a one stop, set-and-forget passive income manager. Making a billions different vaults that the users have to juggle (while performing LESS than direct farming) is NOT how we’re going to attract any users.
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People commenting not realizing that $UNI farming ends in November. Lets not waste the teams time on this.
Open to discussing if $UNI farming gets extended.
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More strategies sounds of course competitive, but I don’t think it’s a good idea to make new Vaults (with IL included) for this. I think the whole idea of Vaults was to remove IL, i.e to keep low risk and stable profit.
Like the @mattdw idea with yPools, I believe it would be more suitable for this (farming UNI stuff).
If I understand this proposal correctly, instead of depositing UNI LP tokens into Uniswap to farm directly, I deposit them into a Vault to farm them indirectly. What exactly is the benefit to the user here?
I realise gas costs will be reduced and swaps automated, but that doesn’t feel hugely compelling to go to the effort of a new vault for a farm that has ~40 days left (I’m sure it will be extended but still) and doesn’t give the user flexibility on their hold/sell strat.
The point of this is that it represents a passive strategy for users to farm UNI. They don’t need to farm, dump, buy. The vault does it for them, it is totally automated. This is good for less savvy users, or ones who don’t want to be so active. If you don’t think there is a market here, then why does Pickle have millions of dollars in deposits?
The other benefit is it gives options. If you don’t want to participate for any reason you don’t have to, but others may want to participate this merely gives them the option. Don’t like it? Don’t participate.
I think its worth noting that these vaults would have users only deposit the UNI-v2 tokens. They deposit into UNI themselves, which carries the IL risk. The vault does not add any additional IL risk, it merely automates the yield-farming process for individuals who are already aware and have accepted the IL risk, implicitly by depositing themselves on UNI.
The vault only uses the farmed UNI to purchase more underlying assets and ultimately UNI-v2. We attract more users by giving them a wide array of options.
The initial 4 UNI pools runs until November 17th, that’s another 30 days of farming and yield. You guys are suggesting we don’t do this because its only for another 30 days? Also, its incredibly naive to assume all UNI farming is done November 17th. This is just the initial pools, more pools will be added. Getting this infrastructure up and running, while obtaining yield, will position Yearn to farm more pools in the future.
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I’m not necessarily against IL strategies, as long as there’s full disclosure of the risks (maybe even putting them in a separate section of the vaults). It looks like strategies with IL may be what many farmers are currently going for, so we might as well offer that (in reputable projects)
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I think we should focus on strategies that are more long term sustainable
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Sorry noobie question; what is IL?
Harvest and Pickle already have these vaults and give some extra Farm/Pickle on top. So yearn could maximize returns by farming on top of these projects, choosing the one that gives the highest returns.
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Let’s end the discussion about “not a sustainable strategy”.
The first wave of distribution for UNI LPs ends in November, yes. HOWEVER:
- 600 million UNI have been allocated to the community
- 150 million were distributed to historical LPs
- 20 million went to the first 4 pools (5 million each)
- This leaves us with a WHOPPING 430 million UNI left for community distribution.
Obviously, this may not all go to LPs, but I think it’s fair to assume that most of it will. This could be a useful framework for Yearn to have in place to farm sustainable yield for years to come.
I think if people are worried about the IL component of this strategy, that’s fair– but again, you will not experience IL on your UNI-V2 LP tokens. As long as we place a disclaimer for this vault, or even go so far as to put this under a new category called “yPools” since it has IL involved in it, I don’t see why we shouldn’t take stable yield when it’s available.
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Impermanent loss
https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22
interesting point @denett . It adds another layer of smart contract risk but providing higher yield is always compelling… I like it.
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Definitely interested. I would participate in a UNI vault.
The risk of impermanent loss is the smallest when 2 assets are strongly correlated. In my opinion the ETH/WBTC pair would be the best pool to provide liquidity to on the short term.
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