Open Schlagonia opened 1 year ago
Updated 7/18:
Main changes include:
Update 7/28
Included in the Rev share the model to handle the migration of existing vault on mainnet which includes setting a lower custom protocol fee to account for it not classifyng as a new revenue stream
Scope
For reference the first V3 BR: https://github.com/yearn/budget/issues/120
Funding for the continued development, testing and deployment of the Yearn V3 system.
For a more detailed description of the vision and end goal of V3, please review the V3 Pitch.
Initial development of the core vault and strategy contracts as well as initial versions of all periphery contracts has been completed and were deployed by the date specified in the initial budget request of July 1st 2023.
This budget request is focused on the initial launch phase of the V3 system as well the continued development of periphery contracts and other needs to make the full system function properly.
Components:
Status based on previous budget request goals.
Plan
Goals
Deadline
2023-10-31
People
Core V3 protocol Team
Money
General
Any funds not spent at the end of the period will be transferred back to the yBudget team or considered for the next period.
NOTE: The V3 team still has $25K DAI from the previous request designated for testing that will be rolled over to continue support testing as well as initial bug bounty programs. We expect for most or all of these funds to still be available by the end of this budget request period.
Comp
Base Pay
Base pay includes pay for core contributors and budget for outside contributors.
Monthly: $40k DAI + 1.5 YFI Total: $120k DAI + 4.5 YFI
NOTE: Pay for outside contributors will be given as seen fit by the V3 core team to any non-yearn contributors to the V3 stack and any unused funds will be rolled over to the next budget request or returned.
Rev Share
Revenue for V3 team is classified as all funds earned from the "protocol fees" through both vaults and strategies across all chains V3 has been launched on.
Protocol fees are the gov set amount that is charged across all vaults and strategies based on the amount of fees that are charged by the vaults management.
Because the protocol fee is a new fee that was not applicable in V2 that allows Yearn to serve as the core infrastructure. And can make revenue on vaults and strategies it doesn't run we classify it as a "new revenue stream".
In the current state the expected rev share once protocol fees are turned on is 12.5% based on current revenue share model.
Current Total == 12.5%
TVL that is currently already held in a V2 vault and simply migrated to V3 would not classify under the "new revenue stream" classification. In order to not overcompensate for existing TVL, when V3 is launched on mainnet, a custom protocol fee will be set for the new V3 versions of existing V2 vaults. The custom protocol fee will be used to make the effective revenue share equal to not classifying protocol fees as a new revenue source.
EX:
Yearn deploys and manages the equivalent of yvWETH on mainnet. The yvWETH V3 vault will have a custom protocol fee of
10 * 5 / 12.5 = 4%
set.Amount
One time: $105k DAI, Monthly: $40k DAI & 1.5 YFI
Wallet address
TBD
Reporting
Once