[Proposal] Whitelist Yearn Finance's Voter Contract for Balanacer VoteEscrow

Governance General Proposal
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[Proposal] Whitelist Yearn Finance’s Voter Contract for Balanacer VoteEscrow

Description

The Yearn Finance community wishes to continue offering strategies to users which access Balancer liquidity pools and the associated BAL emissions. Today Yearn suppliers over $90M in liquidity to Balancer pools on Ethereum mainnet alone.

Yearn strategies currently dump 100% of BAL rewards to convert back to user’s underlying token. With the launch of veBAL, Yearn now has a strong interest in accumulating a meaningful veBAL position - which means locking a percentage of the BAL that would otherwise be sold. In order to achieve this, a Yearn voter contract must be whitelisted by the Balancer DAO so that locking is possible.

Yearn plans to replicate the same architecture utilized today for locking veCRV on Curve. Which is done via a single smart contract to route LP deposits from all strategies into Balancer gauges.

With ability to lock BAL, Yearn also seeks to be a value-add member of the DAO using this contract’s veBAL position to vote on Balancer governance proposals which advance the interest of Balancer DAO.

Specification

Balancer DAO to whitelist of the Yearn Voter smart contract 0x95C764ec4577e0CB96e884047740C6B08137e052 (actual address pending deploy), enabling it to lock veBAL, earn gauge rewards, and participate in governance activities.

Yearn re-designing of all current Balancer strategies to utilize Balancer gauges and implement retention of 10% of all BAL earned from strategy liquidity mining to be used to convert to veBAL.

References

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so cool to see Yearn taking an interest here. Full support!

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Good to see Yearn here. Support this proposal. Hope this is just the beginning :muscle:t2:

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Full support from me. Yearn team is top notch. When yearn boosted pool?

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Full support from my side too.

Yearn has an amazing and trustworthy team, always working in a very productive way with Balancer!

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In support of this. Great to see Yearn getting involved with more governance activities.

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I am in full support of this. It will be great to see Yearn acquire a large veBAL holding.

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I’m really excited to see this happening!

I will also be voting yes on this.

Before we send this to vote, it’d be great to have someone do a light verification of the contract that needs whitelisting for any behavior that’d be unexpected by Balancer. Also, if it could be verified that it’s indeed a Yearn contract. (I apologize to ask for this, I think it just might be helpful for voters who cannot verify everything we whitelist on their own).

@wavey0x just curious if there are any discussions happening on the Yearn side on how much BAL the Yearn DAO be accruing?

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In iull support for this initiative!

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Thanks Juan!

No discussion on market buying BAL at the moment. But we have already modified Yearn strategy code with a configurable keep parameter. This defines the % of farmed BAL that will be atomically portioned off and locked during harvest events. We will set it to 10%, just like our Curve strategies.

Regarding code review, happy to answer any question you all might have. It has passed our internal review process and is already deployed.

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Not seeing a way to edit original post, but am replying here to share a new voter address.

0x95C764ec4577e0CB96e884047740C6B08137e052

Thanks to @Mike_B for pointing out an unused variable in the original.
Changes:

  • removed unused var
  • hardcode governance to Yearn multisig (ychad.eth) in the constructor rather than deployer.
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bumped your trust level, you should be able to edit now

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Very excited for this initiative! In full support!

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FYI - Looks like there is some discussion in Yearn community about modifying the percentage we keep, particularly when strategy is depositing into a Convex-like protocol for Balancer (versus directly via our Balancer voter contract).

In the small chance that something changes, I’d like to hold off on sending this to vote for time being so that I haven’t given voters any misleading information. We can resume soon when we have more complete information to share :slight_smile:

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It’s a great time for Yearn get into the veBAL mix. Still early stages in this game :mechanical_arm:

1 Like