Donate Curve voter airdrops to yvBOOST

This proposal was written in collaboration with @vany365

Summary

There is a desire to provide clarity around how airdrops and other token distributions received by Yearn’s Curve voter contract [1] are handled. This particular contract of Yearn’s has been recipient of multiple high-value airdrops and bribes recently [2][3].

We set forth that all airdrops and rewards earned to this contract should be used to purchase yvBOOST, and have the underlying token withdrawn and donated back to the yvBOOST vault.

Background

A previous governance proposal, YIP-60, established that users of a Yearn vault should be the beneficiary of all airdrops to that particular vault contract.

Examples:

While the voter contract is not technically a “vault” contract, the voting function it serves is most closely aligned with Yearn’s yvBOOST vault product. Incentivizing yvBOOST holders is a net positive for the Yearn ecosystem as they are major contributors to Yearn’s veCRV balance. It makes sense for them to have a share in the rewards that come as a result of Yearn’s votes.

Using the rewards to purchase yvBOOST off the market should also have a positive price impact on the token price which recently has lagged behind analogous competitor assets.

Motivation

The precendent set by the YIP-60 proposal holds true here:

  • Do right by depositors
  • Set expectations straight
  • Do not overload Yearn’s resources
  • Keep it simple
  • Keep it composable

Specification

With this proposal, only holders of yvBOOST would benefit. Holders of vanilla yveCRV would not be recipients unless they deposit into the vault prior to the donation.

The donation process works as follows:

  1. Rewards are claimed by voter contract
  2. Rewards are sold for yvBOOST
  3. yveCRV is withdrawn from yvBOOST
  4. yveCRV is transferred directly to yvBOOST vault, increasing vault pricePerShare

For : Signal clear desire to yFarm to take action and implement this process for handling airdrops to Yearn’s Curve voter contract

Against : No changes suggested.

  • For
  • Against

0 voters

References

  1. CurveYCRVVoter | 0xf147b8125d2ef93fb6965db97d6746952a133934
  2. https://twitter.com/bantg/status/1443949177306759169
  3. BribeV2 | 0x7893bbb46613d7a4FbcC31Dab4C9b823FfeE1026
9 Likes

Love the initiative, thanks for this proposal.

Some point of clarification re the governance process.

Under Gov 2.0 the power to decide on airdrops is held by the yFarm yTeam:

Add a poll to this proposal as per YIP-55 to see if there is general consensus, and if there is you have some options:

  1. Make this a signaling proposal YSP with a non-binding snapshot vote meant to signal clear desire for yFarm to take an action
  2. Make this a YIP and split off eg ‘Decide on Airdrops’ from ‘Farm Treasury’ and give that new power to YFI holders so that this proposal can be enacted. After that yFarm would not be able to decide on airdrops, YFI holders would
  3. Make this a YDP and move ‘Farm Treasury’ in it’s entirety to YFI holders

Probably other options too, but these seem best to me.

3 Likes

Whichever way the vote goes it is great to see a proposal written with such clarity (and a fantastic idea too)

1 Like

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