S2 Team - Budget Request

[0xValJohn]

S2 Team - Budget Request (Update)

Scope

The S2 team is in charge of Yearn V3's entire strategy workflow: from concept and strategy writing to deployment and monitoring. In the frame of this budget request, we will focus on writing brand-new V3 strategies and building an extensive V3-Periphery library for fast, standardized, and secure integration with various protocols. In addition, we will migrate key V2 strategies to the new V3 standard. This strong focus on V3 will enable us to release a substantial number of strategies at V3 launch, capitalizing on every great yield opportunity.

We aim to enhance existing systems and processes, implement an effective onboarding plan for strategists, and provide tools for external integrators. Additionally, the S2 team will collaborate with external contributors and organizations using V3 vaults and developing strategies for their products, striving to foster a collaborative ecosystem around Yearn V3.

Key Responsibilities

V3 Strategy development and readiness

• Build a V3-Periphery library and leverage templatization for increased strategy development speed & security.
• Conceptualize new V3 strategies, assess their potential & prioritization using a newly developed framework (yield, scalability, etc.).
• Develop a universal strategy testing template, ensuring maximized coverage and consideration of edge cases.
• Perform comprehensive protocol research and due diligence before developing strategies for new protocols.
• Write new V3 strategy code and lead peer reviews with designated protocol experts.
• Migrate valuable Yearn V2 strategies by porting code to V3.
• Oversee the deployment of strategies (ape.tax & prod) and ensure each production strategy has a designated owner.

Systems, Monitoring, and Procedures

• Improve general monitoring of underlying protocols (timelocks, upgrades, key parameters, etc.) and maintain a register of active alerts.
• Collaborate with the V3 Protocol team to improve the Yearn V3 system with feedback from V3 strategy writing.
• Perform S2 audits of existing high TVL strategies to keep them cutting edge and save on external audits/reviews.

Onboarding and Integrations

• Develop and implement a comprehensive onboarding plan for new strategists.
• Collaborate with external integrators and external organizations to facilitate their use of V3 vaults and strategy development for their products.
• Participate in business development meetings to generate leads for new strategies and products while fostering a collaborative and innovative ecosystem around Yearn V3 through community engagement and partnerships.

Principles

• Security and transparency are prioritized above all else.
• Optimize expected value (EV) at all times.
• Whenever possible, the team builds systems and tooling that others (both inside and outside Yearn) can leverage to enhance Yearn's platform and offerings.

Deliverables (KPIs)

• Develop new V3 strategies and migrate V2 strategies to V3 to ensure that single-asset V3 vaults have multiple strategies available at launch. 📋 KPI: all single-asset V3 vaults have at least 3 strategies available at launch.
• Strategy peer reviews, including existing high TVL strategies, new strategies, and V3 strategies. 📋 KPI: all submitted strategies are attended to (begin peer review or clear reason for delay) within 1 week.
• Revamp and maintain the project board and retain full ownership of the strategy cards (entire lifecycle). 📋 KPI: full project board migration and all strategies assigned to cards within the first month of the grant
• Set up and maintain a monitoring system and emergency protocol for each strategy. 📋 KPI: each production strategy has a corresponding emergency procedure for immediate war room response
• Core team members act as signers on all SMS multisigs and commit to review+sign txns in a timely manner. 📋 KPI: tx signed within a few hours (always should be <12 hours), periodically verified running Safe report
• Produce farming reports detailing all protocols with TVL > $10m and any significant changes in the market. 📋 KPI: farming report issued at least monthly

Timeline

2023-07-01

People

• dudesahn (lead)
• mil0x
• 0xValJohn
• FP
• Spalen

Funding

Funding starts in April 2023 for 3 months. The team has been working on the deliverables throughout April.

		Monthly		Total
Member	Months	DAI	YFI	DAI	YFI
Core engineer - lead (dudesahn)	3	7,500	0.5	22,500	1.5
Core engineer (mil0x)	3	12,000	0.5	36,000	1.5
Core engineer (0xValJohn)	3	12,000	0.5	36,000	1.5
Core engineer (FP)	3	5,000	0.5	15,000	1.5
Engineer (Spalen)	3	3,000	0.25	9,000	0.75
Average Monthly:		39,500	2.25
Total:				118,500	6.75

Wallet address

0x00520049162aa47AdA264E2f77DA6749dfaa6218

Reporting

Monthly

[0xValJohn]

April 24th update:

• Remove 24/7 coverage funding. The team will work on establishing systems/procedures and put forward recommendations.
• Amend dudeshan comp (additional funding being received from another team)

[0xValJohn]

April 27th update:

Per feedback received from yBudget, we recentered the scope of work around the following:

• V3 Strategy development and readiness
• Systems, Monitoring, and Procedures
• Onboarding and Integrations

Bonus and internship positions were also removed.

[0xValJohn]

April 28th update:

Further reduction in comp.

[0xValJohn]

Monthly report (May 2023)

First month for S2. The main focus was v3 strategy/periphery contracts development, Optimism vault growth, and organizational & operational tasks.

Peer reviews

• https://github.com/yearn/yearn-strategies/issues/475
• https://github.com/yearn/yearn-strategies/issues/490
• https://github.com/yearn/yearn-strategies/issues/491
• https://github.com/yearn/yearn-strategies/pull/529
• https://github.com/yearn/yearn-strategies/pull/531
• https://github.com/yearn/yearn-strategies/issues/517
• https://github.com/yearn/yearn-strategies/issues/518
• https://github.com/yearn/yearn-strategies/issues/528
• https://github.com/spalen0/tokenized-strategy-morpho/pull/5

Organisational

• https://github.com/yearn/yearn-strategies/issues/514 Template for recurring reviews
• https://github.com/saltyfacu/ape-tax/pull/201 Add strat to ape.tax
• :heavy_check_mark: Revamp and maintain the project board and retain full ownership of the strategy cards (entire lifecycle)
• :heavy_check_mark: Kanban board specific for v3: https://github.com/orgs/yearn/projects/27/views/18
• :heavy_check_mark: Looked at signers' stats for SMS/CMO multi-sig and added @mil0xeth SMS multi-sig
• :heavy_check_mark: Check-list for review and emergency functions (ongoing): https://hackmd.io/@mil0xeth/SyuDPQkfh
• :heavy_check_mark: List list of Polygon and Avalanche farming opportunities: https://github.com/0xValJohn/farming-report

Initiatives on sidechain reward swapper

• https://github.com/Schlagonia/tokenized-strategy-periphery/pull/5
• :heavy_check_mark: Ideation: https://github.com/dudesahn/sidechain-swapper/tree/1inch
• :heavy_check_mark: Discussions with Wido & Portal
• :heavy_check_mark: Discussion and prototyping for a multichain swapper using EIP-1271 signatures (private)

Optimism vault ramp up

• :heavy_check_mark: Reward distribution and troubleshooting of zap and vault limit issues
• :heavy_check_mark: Follow-up with Sonne team (after yAudit) on parameters change for potential allocation increase
• https://github.com/yearn/strategist-ms/pull/2834
• https://github.com/yearn/chief-multisig-officer/pull/956
• https://github.com/yearn/chief-multisig-officer/pull/954
• https://github.com/yearn/chief-multisig-officer/pull/945
• https://github.com/yearn/chief-multisig-officer/pull/937
• https://github.com/yearn/chief-multisig-officer/pull/936

Strategy pipeline

• https://github.com/yearn/yearn-strategies/issues/378
• https://github.com/yearn/yearn-strategies/issues/536
• https://github.com/yearn/yearn-strategies/issues/537
• https://github.com/yearn/yearn-strategies/issues/538
• https://github.com/yearn/yearn-strategies/issues/541
• https://github.com/yearn/yearn-strategies/issues/542
• https://github.com/yearn/yearn-strategies/issues/535
• https://github.com/yearn/s2/issues/15
• https://github.com/yearn/s2/issues/14
• https://github.com/yearn/s2/issues/12
• https://github.com/yearn/s2/issues/11
• https://github.com/yearn/s2/issues/10
• https://github.com/yearn/s2/issues/9
• https://github.com/yearn/s2/issues/8
• https://github.com/yearn/s2/issues/7
• https://github.com/yearn/s2/issues/6

[0xValJohn]

Monthly report (June 2023)

Peer review

• https://github.com/yearn/yearn-strategies/issues/544 (V3 periphery)
• https://github.com/yearn/yearn-strategies/issues/545 (V3 periphery)
• https://github.com/yearn/yearn-strategies/issues/546 (V3 periphery)
• https://github.com/yearn/yearn-strategies/issues/547 (V3 periphery)
• https://github.com/yearn/yearn-strategies/issues/549
• https://github.com/yearn/yearn-strategies/issues/491

Due diligence

• https://github.com/yearn/yearn-strategies/pull/551 (ongoing, with external contributor)
• https://github.com/yearn/yearn-strategies/pull/553 (ongoing for DSR strategy)
• https://github.com/yearn/yearn-strategies/pull/531
• https://github.com/yearn/yearn-strategies/pull/555 + S2 audit

Deployed strategies

• MAI AAVE Lender (Optimism): https://github.com/yearn/chief-multisig-officer/pull/957, https://github.com/yearn/chief-multisig-officer/pull/958, https://github.com/yearn/chief-multisig-officer/pull/970
• Balancer factory vaults https://github.com/yearn/chief-multisig-officer/pull/978
• Velodrome V2 factory https://github.com/yearn/yearn-strategies/issues/552, https://github.com/yearn/chief-multisig-officer/pull/984
• https://github.com/yearn/chief-multisig-officer/pull/964
• https://github.com/yearn/chief-multisig-officer/pull/960
• https://github.com/yearn/chief-multisig-officer/pull/965
• https://github.com/yearn/chief-multisig-officer/pull/968
• https://github.com/yearn/strategist-ms/pull/2859

Development Pipeline

• 🏗️ Work ongoing with x48 to integrate Openflow solver with L2 strategies
• https://github.com/yearn/yearn-strategies/issues/541
• https://github.com/yearn/yearn-strategies/issues/550
• https://github.com/yearn/yearn-strategies/issues/535
• https://github.com/yearn/yearn-strategies/issues/378
• https://github.com/yearn/yearn-strategies/issues/542
• https://github.com/yearn/yearn-strategies/issues/538
• https://github.com/yearn/yearn-strategies/issues/536
• https://github.com/yearn/yearn-strategies/issues/537

Miscellaneous

• Participated and provided feedback for yETH test (Arbitrum)
• Discussed with potential contributors (2) and other protocols interested to integrate (Term Finance, QiDao, Idle, Origin, Illuminate, Ethos, and more)
• OP rewards distribution https://github.com/yearn/chief-multisig-officer/pull/961, https://github.com/yearn/chief-multisig-officer/pull/976, https://github.com/yearn/chief-multisig-officer/pull/986
• Provided feedback and proof-read V3 proposal for AVAX
• https://github.com/yearn/chief-multisig-officer/pull/966
• Flux lender ramp-up https://github.com/yearn/strategist-ms/pull/2852, https://github.com/yearn/strategist-ms/pull/2863, https://github.com/yearn/strategist-ms/pull/2872
• rETH migration https://github.com/yearn/strategist-ms/pull/2855, https://github.com/yearn/strategist-ms/pull/2854
• Provided feedback on on-chain risk framework https://github.com/rareweasel/risk-framework/issues/1
• Coordination with FE team for new products (yLQTY, balancer factory, make updates for curve factory, etc)

[0xValJohn]

Monthly report (July 2023) ⚠️ Preliminary

Peer review

• https://github.com/yearn/yearn-strategies/issues/542
• https://github.com/yearn/yearn-strategies/issues/561
• https://github.com/yearn/yearn-strategies/issues/556
• https://github.com/yearn/yearn-strategies/issues/552
• https://github.com/yearn/yearn-strategies/issues/550
• https://github.com/yearn/yearn-strategies/issues/546 (cont.)
• https://github.com/yearn/yearn-strategies/issues/545 (cont.)
• https://github.com/rareweasel/risk-framework/issues/1 (cont.)
• https://github.com/yearn/yearn.fi/issues/271
• https://github.com/yearn/yearn.fi/issues/272

Due diligence

• https://github.com/yearn/yearn-strategies/pull/551 (cont.)
• https://github.com/yearn/yearn-strategies/pull/553 (cont.)
• https://github.com/yearn/yearn-strategies/pull/560
• https://github.com/Risk-DAO/bad-debt-leaderboard/pull/42 (pushed for this)

Strategies Maintenance

Velodrome:

• https://github.com/yearn/strategist-ms/pull/2886
• https://github.com/yearn/strategist-ms/pull/2879
• https://github.com/yearn/chief-multisig-officer/pull/985
• https://github.com/yearn/chief-multisig-officer/pull/987
• https://github.com/yearn/chief-multisig-officer/pull/989
• https://github.com/yearn/chief-multisig-officer/pull/1001

MAI:

• https://github.com/yearn/strategist-ms/pull/2897
• https://github.com/yearn/strategist-ms/pull/2874

Sonne:

• https://github.com/yearn/strategist-ms/pull/2890
• https://github.com/yearn/strategist-ms/pull/2885
• https://github.com/yearn/chief-multisig-officer/pull/1002

OP:

• https://github.com/yearn/chief-multisig-officer/pull/986
• https://github.com/yearn/chief-multisig-officer/pull/994
• https://github.com/yearn/chief-multisig-officer/pull/1005
• https://github.com/yearn/strategist-ms/pull/2895

Curve:

• https://github.com/yearn/strategist-ms/pull/2887
• https://github.com/yearn/strategist-ms/pull/2882
• https://github.com/yearn/strategist-ms/pull/2881
• https://github.com/yearn/strategist-ms/pull/2894

FTM (multichain hack):

• https://github.com/yearn/chief-multisig-officer/pull/992
• https://github.com/yearn/chief-multisig-officer/pull/993
• https://github.com/yearn/strategist-ms/pull/2883

Factories:

• https://github.com/yearn/strategist-ms/pull/2877
• https://github.com/yearn/chief-multisig-officer/pull/984
• https://github.com/yearn/yearn-strategies/issues/559

yLQTY:

• https://github.com/yearn/chief-multisig-officer/pull/1003

Misc.:

• https://github.com/yearn/strategist-ms/pull/2880
• https://github.com/yearn/chief-multisig-officer/pull/1000
• https://github.com/yearn/chief-multisig-officer/pull/1006
• https://github.com/yearn/strategist-ms/pull/2888

Periphery

• 🏗️ Work ongoing with x48 to integrate Openflow solver with L2 strategies (cont.)

Miscellaneous

• Team members (@spalen0 & @0xValJohn) attended Defi Security Summit and EthCC. Had meetings with over 20 partners, protocols, and potential integrators (Exactly, Lido, Scroll, Base, Napier, Tazz, Gelato, Valantis, ChainSecurity, EF, Swaap, Mantle, Silo, Steakhouse, Angle, Stader, and many more).
• Several discussions with QiDao to bootstrap the yvMAI vault, now standing at 800k TVL
• Attended Fantom multi-chain war room
• Supported discussions and votes of SFC on raised allocation for Sonne Finance.