Authors: xgambitox, Storm0x, 0x7d54
Bootstrap SuperBoosted - a Yearn SubDAO, self-governed by SuperYFI holders, to build on top of Yearn’s core products.
This proposal is currently in the discussion phase. As per our voting rules outlined in YIP-55[#1], it will be in discussion for at least 3 days with a non-binding forum poll to gauge sentiment before it can be assigned a YIP number and move to Snapshot for a binding vote by veYFI holders.
If adopted, this proposal seeks to:
- Bootstrap SuperBoosted as a Yearn SubDAO; permissionless and self-governed by SuperYFI holders.
- Ratify the Design Specification of SuperYFI and endorse its development and deployment.
- Specify the implementation and bootstrapping process.
- Specify parameters and initial configurations.
- Specify functionality during normal operations.
As long-time contributors of Yearn, this proposal is an effort to continue to add value to the protocol with new projects that boost (no pun intended) Yearn’s product offerings in a synergistic fashion.
The SuperYFI project has been in active development for several months, aiming to establish a SubDAO designed to deliver immediate advantages to both the Yearn protocol and its community.
In accordance with YIP-61[#2] and YIP-71[#3], Yearn continues to operate within a multi-DAO structure. To further the evolution of Yearn’s decentralization, it is crucial to foster community-driven efforts that expand upon Yearn’s core developments.
The inaugural product from SuperBoosted is SuperYFI, which is designed to function on top of veYFI and V3 vaults as its foundation, while using services provided by yTeams, such as Dinobots, to contribute fees back to Yearn’s Treasury.
SuperYFI aims to provide an alternative for YFI maximalists, allowing them to maintain decentralized governance voting power while remaining closely aligned with Yearn’s community and the best interests of the DAO. All of this is achieved while simplifying and maximizing the efficiency of interacting with veYFI individually.
- SuperYFI: a fully transferable token that is minted on a 1:1 ratio by providing YFI, which is later perpetually locked onto Yearn’s vote-escrowed system, veYFI.
- Staked SuperYFI: Yearn v3 vault to deposit SuperYFI, that receives and compounds dYFI and YFI rewards from perpetually locked YFI on veYFI.
- SuperYFI Liquidity Provider: Yearn v3 vault to deposit a Yearn SuperYFI/YFI LP curve factory vault, that receives and compounds curve rewards from LP, and dYFI from a veYFI gauge.
- SuperBoosted Vaults: Yearn v3 vaults for each gauge available in veYFI, that receive and compound dYFI rewards to the underlying asset, boosted by SuperYFI.
SuperYFI is designed to be:
- Self-governing. SuperYFI holders control SuperBoosted SubDAO entirely.
- Flexible. Through an established process, governance can set and configure SuperYFI settings in the best interest of the system.
- Immutable. Smart Contracts are not upgradable. Design avoids proxy upgrades and changes to the system require redeploying.
- Extensibile: The core design is centered around veYFI but is adaptable to other systems.
- Gauge voting. This will be executed off-chain until veYFI implements on-chain voting.
- Yield. This is determined by the protocol’s configuration.
- Governance voting process. SuperBoosted Governance will adhere to Yearn’s current voting process, until a change is approved by SuperBoosted’s governance.
- Open access to Yearn products through alternative gateways.
- Option for SuperYFI as collateral in other smart contract systems.
- Deploy yearn V3 strategies on top of SuperYFI system.
- Deploy new smart contracts to extend to new systems/protocols.
- Integrate SuperYFI and associated vault assets into external, permissionless DeFi strategies that are vetted through Yearn’s robust security process. This initiative aims to expand the array of choices available to depositors while simultaneously attracting increased capital.
- Develop a bribe market around SuperYFI.
- Any Yearn protocol integration like veYFI or v3 vaults being vulnerable to an exploit.
- A critical flaw in SuperYFI’s design or implementation results in unintended behavior or loss of funds.
- Incorrect protocol parameters lead to subpar performance and functionality.
- Proportion of SuperYFI to YFI in the pool can become unbalanced due to different conditions and low liquidity.
- All development, deployment and infrastructure costs needed will be assumed by the contributors that want to participate and will be maintained separetely.
- Protocol fees will operate normally as with any protocol that builds on top of vaults V3.
- SuperBoosted will work under the same conditions a regular partner of Yearn’s Partnership Program[#4], by providing new sources of TVL.
- Treasury from SuperBoosted will be used to continue to bootstrap its development as established by its governance.
- SuperBoosted will operate in a dedicated space inside Yearn’s current governance forum section and discord.
- Integrations with yTeam services will provide fees back to Yearn’s treasury.
- yCRV voting power will be beneficial for launching the Curve Pools to support the system.
- An initial one-time grant from Yearn’s treasury is requested in order to cover external audit expenses giving priority to yAudit according to schedule.
- Following an external security audit, at yBudget discretion it’s requested that Yearn treasury adds liquidity in the SuperYFI LP. A recommended allocation for this is 20-30 YFI, divided equally between YFI and superYFI at a 50%/50% ratio.
- Furthermore, an allocation of 33 YFI (0.1% of the total supply), to be deployed directly from the treasury as pure SuperYFI. This allocation serves as an additional revenue stream and voting power for depositors.
- Creating a Yearn-themed product: Option rejected to ensure independency and autonomy and also avoid reliance of third party governance.
- Launch without Yearn’s support: Option rejected. The project aims to cultivate synergy and deliver benefits to the Yearn community, in accordance with Yearn’s goals and principles, while also ensuring the inclusion of existing contributors from the community.
- Governance: Initially set as a Gnosis Safe multisig, with a 3/5 signing threshold, consisting of SuperBoosted contributors and trusted Yearn community members, delegated by SuperYFI holders to execute transactions until an on-chain voting system is implemented.
- Management: Initially set as Governance, until it’s delegated to a specialized team. Can set roles, fees, and other configurable parameters of deployed strategies.
- Guardian: Initially set as Governance, until it’s delegated to a specialized team. Can shut down deposits and certain system functionalities in case of emergencies.
- SuperYFI, stakers, and LP holders will have voting power equivalent to the amount of underlying SuperYFI
- The voting duration will adhere to the rules stipulated by the veYFI voting system.
- Voting with Snapshot to later transition to on-chain.
- No quorum requirements will be set at launch.
- Fractional voting is permitted.
- Votes are final and irreversible.
- General proposals require a 2/3 qualified majority vote (66.66% for).
- General proposals execute in submission order; later proposals override earlier ones.
|Mint Buffer||Pool depeg threshold to route between minting or market buying SuperYFI (In BPS)||0 - 500||15|
|Performance Fee||Fee charged from reported gains that get sent to SuperBoosted Treasury, deducting Yearn Protocol Fees. (In BPS)||500-5000||500|
|Min Acknowledgement Fee||Minimum fee that SuperBoosted vaults distribute to Staked SuperYFI holders when the price of the pool is pegged. (In BPS)||0 - 10000||1000|
|Max Acknowledgement Fee||Maximum fee that SuperBoosted vaults distribute to Staked SuperYFI holders when the price of the pool is depegged. (In BPS)||0 - 10000||2000|
|Lower Pool Peg||Lower value to consider pool as depegged for Acknowledgement Fee purposes. (In BPS)||0 - 10000||9000|
|Upper Pool Peg||Upper value to consider pool as depegged for Acknowledgement Fee purposes. (In BPS)||0 - 10000||10000|
|Max Lock Amount||Maximum amount of held YFI allowed for locking into voting escrow. (In BPS)||0 - 10000||10000|
|Max Mint Cap||Maximum amount of SuperYFI allowed to be minted. Part of guarded launch||-||150|
|Max Deposit Amount||Maximum amount of assets to be deposited per strategy. Part of guarded launch||-||Defined per strategy|
|Amplification parameter A||It determines the sensitivity to pool imbalances.||1-5000||50|
|Swap fee||Fee charged for swapping assets with the pool, paid to SuperYFI Liquidity Provider holders||0.04-1%||0.08%|
|Asset type||Asset type for pool, as an integer||0=USD, 1=ETH, 2=BTC, 3=Other||3|
|Implementation idx||Curve pool index of the implementation to use. All possible implementations for a pool of N_COINS can be publicly accessed via
Minting of SuperYFI is only allowed by depositing YFI into the SuperYFI contract on a 1:1 ratio.
Development of smart contracts is mostly in code freeze stage and just pending final review changes. The protocol is estimated to be ready for launch in a few weeks following approval of this proposal, and after the official launch of vaults v3 contracts on Ethereum Mainnet.
Tasks that need to be executed include:
- Finalize the security review and bug fixes for smart contracts.
- Deploy contracts on the testing environment for development integrations for the frontend and backend.
- Deploy frontend and backend with MVP use cases.
- Coordinate with Yearn marketing team for launch.
- (Guarded Launch) Deploy final version of smart contract with TVL limits in place and also emergency pause capability by governance for the protocol.
- Finish external audit.
- Fine-tune limits for adjusting risk.
- A SuperYFI/YFI Curve Pool is deployed.
- A SuperYFI/YFI Curve yVault is deployed from the Yearn Vault Factory.
- A SuperYFI/YFI Curve Pool Gauge is requested.
- A SuperYFI/YFI veYFI Gauge is requested.
- Conduct additional audits and establish bounty programs to further enhance security based on TVL growth.
- Propose SuperYFI vote to lift SuperYFI max mint cap.
- After this proposal’s approval, we will continue with last tasks of the development phase and enter launch phase.
While our team diligently follows best practices and adheres to industry standards to enhance smart contract security prior to launch, it is important to acknowledge that smart contract risks are inherent and, despite our efforts, we cannot assure a completely issue-free protocol upon launch. We want to make it clear that Yearn and YFI token holders will not be held liable for any critical failures or financial losses experienced by users while utilizing this protocol.
If you’re keen on staying updated with announcements or eager to lend a hand, please connect with us on Twitter. We’re open to engagement and support from the community! link here