Factory LP vaults serve as ideal collateral for lending protocols, including leverage protocols such as Abracadabra. While Yearn's v3 vault codebase offers many improvements for single-asset vaults, for LP vaults with a constant strategy, the benefits of using the newer v3 codebase are less significant, especially if these vaults are to be used to back other assets on-chain. Thus, the factory vaults fall into a space that is not-quite v3 but not-quite v2. With this proposal, we aim to clarify the place of factory vaults within the Yearn fee/revenue structure and outline a path to continue their growth as a part of Yearn's ecosystem across multiple chains.
yFactory team will own and manage permissionless vault factories and their associated contracts (global, vaults, strategies, periphery)
Monitor daily and adjust as needed credit available, debt allocation for vaults with multiple strategies (curve/convex), and harvest trigger settings
Deploy new template strategies as needed for breaking changes in interfaces, update sidechain strategies with MEV-resistant swap option like ySwaps, etc.
Aim for factory vaults to be immutable(ish) over time (burned or perhaps token-holder-only governance)
Continue support of routing legacy Curve => factory vaults
Apply for grants from protocols and foundations to facilitate further revenue generation for Yearn
Work with partners to add factory vaults as collateral
Lending markets and CDPs
Oracle development, collateral recommendations, DD, etc.
Develop V3 support if/when needed, including v2 => v3 adapters
Current v3 architecture doesn't offer substantial benefit for factory vaults, but this may change in the future
Work with partners to deposit POL in factory vaults whenever possible
Continue deploying new factories for appropriate protocols
In-progress: Aerodrome (Base), Equilibre (Kava)
Potential targets: Pendle (Ethereum/Arbitrum), PancakeSwap v3 (Ethereum), Pearl (Polygon), Ramses (Arbitrum)
Support one-off LP vault creation and integration for chains without need for factories (Primarily Curve and Balancer/Beethoven)
Plan
The following deliverables will be met as part of this plan:
Integrations
Collaborate with Abra to add Curve and Balancer factory and non-factory (sidechain) vaults as collateral
Factory Velodrome vaults added as collateral on Optimism lenders (Abra, QiDao, Iron Bank, Sonne) where possible
Planned following oracle development (in progress)
Support an Abra launch on Optimism as needed (discussions ongoing, launch likely 4-6 weeks out)
Equilibre (Kava) factory vaults as collateral on Abra
Apply for KAVA grant (in progress)
Explore collateral options with other protocols if/when opportunities arise
Code
Equilibre factory on Kava (in discussions with protocol)
Aerodrome factory on Base (in discussions with protocol)
Additional Curve and Balancer vaults as needed outside mainnet
Optimism/Kava to support MIM pool
Curve/Balancer to help support v3 launch on Polygon
Deadline
2023-11-01
People
corn, dudesahn. both will work together to produce all code, apply for external grants to boost vault yield, and collaborate with partners to add assets as collateral and deposit POL into factory vaults.
Money
No salary, only revenue sharing.
0% for Curve (live prior to switch to budget requests)
dudesahn
commented
1 year ago
Scope
Factory LP vaults serve as ideal collateral for lending protocols, including leverage protocols such as Abracadabra. While Yearn's v3 vault codebase offers many improvements for single-asset vaults, for LP vaults with a constant strategy, the benefits of using the newer v3 codebase are less significant, especially if these vaults are to be used to back other assets on-chain. Thus, the factory vaults fall into a space that is not-quite v3 but not-quite v2. With this proposal, we aim to clarify the place of factory vaults within the Yearn fee/revenue structure and outline a path to continue their growth as a part of Yearn's ecosystem across multiple chains.
Plan
The following deliverables will be met as part of this plan:
Deadline
2023-11-01
People
corn, dudesahn. both will work together to produce all code, apply for external grants to boost vault yield, and collaborate with partners to add assets as collateral and deposit POL into factory vaults.
Money
No salary, only revenue sharing.
Amount
0 DAI, 0 YFI
Wallet address
TBD
Reporting
Monthly