It has come to the Discord community’s attention that the oracle contract, which is meant to allocate yEarn assets to lending protocols with the highest yield (supply intertest rate + any incentive), is currently not calculating rewards correctly. For example, for Dai, Compound is paying the best interest + COMP rewards. Instead, yEarn assets are stuck in Aave right now (everybody noticed the jump in their TVL). This means that we are harvesting only a small fraction of the yield we could be.
CHOICES
Voting for:
The fix to the oracle contract would replace the current:
So one thing to note about the public rebalance() function is that it just allocates everything to whatever has the highest APR. Currently need the admin key to do partial rebalancing.
That seems a bit more problematic now that yearn has such a big TVL.
Maybe having a 20/25% TVL cap for rebalance(). Now the public function would always do partial rebalances. That’s one way so that you can end up with 75/25 or 80/20 compound/aave.
I suppose the question is how decentralized do protocols need to be for iearn to allocate to? Compound does scare me though with their centralized oracle
Its crazy that Compound isnt being mined. The rates are the best in the base layer lending protocols, the COMP is another bunch of percent on top.
Their oracle might be centralized, but its never had an issue, and its the only part remaining thats centralized–dydx and Aave and the other places that ytokens go have so many other ways they could “steal” all the money. All week, Y is 100% centralized (but we solved that).
Would somebody be able to create more thorough risk assessment for this? I, for one, am unsure of the mechanism by which and by whom value could be drawn out of the yearn ecosystem by the centralization of the Compound oracle. Learning how that mechanism would be enacted would allow for better judgement of risk versus reward.
If you want to go down the “is this risky” rabbit hole, there should be a look at risk of EVERY project involved in the process of getting to returns:
Admin keys of every project (which ones can steal all your money with this - dydx, aave, yearn, curve, balancer)
Oracle risk (dydx, aave, compound)
Smart contract risk (dydx, aave, compound, yearn, curve, balancer) etc plus all the staking contracts
The marines clearly hate Compound, but you know chainlink is equally risky or worse right? the chainlink team is the admin of all the smart contracts, which is just as centralized, and it previously led to losses at other places like synthetix. You can pick on compound, but there’s never been an issue. And here we are using fully unaudited code of a brand new project, and not concerned over the bigger risks.
While I appreciate Leshner stopping by to share this with the community, he’s likely just driving his agenda and is peeved that the funds aren’t on Compound right now, especially as Compound is getting crushed by Aave as of late. There is possibly another reason for using Aave that we are not yet aware of.
Agreed, and that’s why we brought it here, becuase we wanted to get it in front of more eyes so that we could have this debate.
Personally, I want to earn the most revenue for the pool, and I think that without the counter-points, that a lot of other people would agree with that as well.
If it’s purely centralization of the COMP oracle, then that’s one thing, but if there are other risks and reasons and such, I’m interested in hearing the explanations!
As yield farmer, do we really care about his agenda as long as we can earn the most yield for our capital? Compound is a clear winner here because of $COMP price.
If there is one truth to YFI it is YIELD FARM INFINITE. We maximize returns here and leave LEND/COMP faction drama at the door. A lot of bagholders of both will shill their team - we care about yield farming. Anyone who is for one and not the other doesn’t belong here.
You’re not. The yV2 tokens can’t claim COMP, and even though Compound’s on-chain APR reports higher (in the moment), Aave’s is higher in aggregate. I realized that Aave reports monthly APY (a very accurate stat), Compound reports the current APR (highly volatile). Which is why I’m still working on new Oracles to normalize the two, so they both report the same metric.
yearns job is always highest returns and have gone through many different iterations since early Jan. I’ve been posting all the decisions trees on medium if you would be interested to read more, there is a lot more nuance than what’s being claimed.
If COMP was claimable (which it is not anymore since I burned my keys), then I would have agreed though. But v4 will take care of that
Optional path to explore for other oracles for V4, V6 , and V8 (the best imo).
It can be modified with the mechanism as follows:
With an epoch length of one hour, the modified the Treasury’s related operations to use a new oracle instead of a TWAP oracle.
But cautiously, if it is not broken and works well, everybody is happy that—no need to change or improve.
We keep rock in chairs.
