Yearn Finance Newsletter #18

Week Ending January 17th, 2021

Welcome to the 18th edition of the Yearn Finance Newsletter. Our aim with this newsletter is to keep the Yearn and the wider crypto community informed of latest news, including product launches, governance changes, and ecosystem updates. If you’re interested in learning more about Yearn Finance, follow our official Twitter and Medium accounts.

Summary

  • Deliberation to Mint More YFI for Contributors

  • BABY: Buyback and Build Yearn YIP Voting is Live

  • Curve Swaps: Permissionless Stablecoin Pools

  • Single-Sided Liquidity Provisioning & Impermanent Loss Hedge Being Tested

  • Yearn State of the Vaults

  • Partnership Roundup

  • Governance Roundup

  • Ecosystem News

Deliberation to Mint More YFI for Contributors

A new potential YIP was posted to the governance forum this week discussing the possibility of minting and allocating 1k YFI to Yearn core developers and contributors under a vesting schedule. The Yearn governance token (YFI) launched during a frenzied fair-launch farming period lasting approximately 9 days in July 2020. After the initial farming phase, YIP-1 was passed that voted against any additional YFI emissions. 

As a result, many core developers or strategists who joined Yearn at a later date had very little YFI. Several core developers, strategists, and contributors have expressed concern that they do not hold sufficient YFI to capitalize on upside of the protocol. This potential YIP would mint additional YFI and distribute to core developers and contributors in an effort to incentivize them to continue to build and improve the Yearn protocol.

Discussions among the community are still on-going and various alternative solutions are being evaluated. Additionally, a community member benevolently agreed to match up to 20 YFI to be given to developers. We encourage you to join discussions on the governance forum. You can read the initial governance post here and the other post from the community benefactor here

BABY: Buyback and Build Yearn YIP Voting is Live

A new YIP was proposed recently that will cease staking rewards in the governance contract and instead use protocol earnings to buy YFI in the market. The purchased YFI would be given to Yearn contributors and to fund other initiatives that would help the ecosystem grow. This YIP was proposed before the proposal above was introduced that discussed potentially minting additional YFI. 

This YIP is now live on Snapshot and voting concludes on January 19th. You can read the full description of the YIP and vote on it here.

Curve Swaps: Permissionless Stablecoin Pools

We are pleased to announce a new product in collaboration with Curve.fi. Users can now create permissionless stablecoin pools using any stablecoin and ones in the 3pool (DAI, USDC, & SUDT), on Curve.fi. Algorithmic stablecoins have taken decentralized finance (DeFi) by storm in recent months. These coins are elastic supply but ultimately attempt to restore peg to $1. Many of these coins have experienced difficulties maintaining their peg, but by adding them to a liquidity pool with other stablecoins (DAI, USDC, & USDT), they may achieve peg easier.

The initial algorithmic stablecoins supported include, BAC, ESD, DSD, MIC, FRX, and Dollar protocol. You can swap these coins between other coins in the pool, add/remove liquidity, or create a new pool.

The user interface can be accessed here. Please be aware this is a new product and experimental in nature.

Single-Sided Liquidity Provisioning & Impermanent Loss Hedge Being Tested

We are in the process of testing a solution that will mitigate the negative effects of Impermanent Loss. This product is intended to be used in SushiSwap, Yearn’s AMM arm. A UI has been launched, but is only intended for advanced users to monitor their positions. Do not purchase the coin associated with this product. Additional information will be provided in the future. 

Advanced users can access the user interface here. Note this interface does not accept deposits or withdrawals, and is only for monitoring purposes.

Yearn State of the Vaults

You can read our weekly synopsis regarding Yearn’s yVaults, including current strategies and upcoming changes here.

Partnership Roundup

You can read our weekly partnership roundup discussing updates involving partners in the Yearn ecosystem here.

Governance Roundup

You can read our bi-weekly governance roundup discussing potential YIPs or ones actively being voted upon here.

Ecosystem News

Vaults v2-0.3.0 published to Registry

Yearn 2.0 video teaser

Yearn v2 UI update

Yearn hoodies

Diagram of levered COMP farming yVault

Curve Swaps video announcement

St. Ether Vault under testing

Framework Ventures expressing support to mint more YFI

New yVault for EUR pool on Curve. fi

Thread about C.R.E.A.M v2’s Iron Bank