Strategist rewards are way too low at the moment and it is unlikely that new strategists would even cover the costs of testing.
Strategists currently receive 0.5% of the profit from their strategy. Imagine a strategy that averaged $1m AUM at 10% APR and lasted for 6 months. The strategist would only earn $250 ($1m * 10% * 0.5% / 2). Which is less than what they would have spent.
This may not have been a problem for V1 as AUM and APR were very high per strategy. But going into V2 there will be multiple strategies per vault sharing the AUM and APRs are settling.
From a growth point of view: We want to attract the best strategists. I believe that Yearn’s edge is going to be that it will employ complex strategies that people won’t trust anon quick fork developers to have safely implemented. But building those are difficult and so strategist compensation needs to make it worthwhile. Especially when we get to the point that strategists are teams and not just individuals.
From a safety point of view: Underpaying the people responsible for creating a safe strategy for millions AUM is dangerous. Even disregarding bad actor risk, if the only way a strategist can make money is to churn out new strategies quickly they will take shortcuts in testing.
From a selfish point of view: I am a strategist building the new leveraged DAI comp farming strategy and will probably lose money on it so want to change that.
Increase strategist compensation. V2 vaults haven’t been completely finished yet so it can come from multiple areas. It can come from increasing overall fees. Or sharing some of the AUM fee. Or increasing strategist share of profits above 0.5%. This should be a discussion.
For: Prosperity for all
Against: Lose all our strategists to other projects