Proposal X: YFI minting delay proxy
TLDR
I think we should add a delay proxy to the YFI mint endpoint.
Reasoning
Given the recent update in minting rights ownership (YFI Minting Ownership), YFI token is now safer from dilution. However, should multisig or the signatories be compromised, a malicious party can still mint an arbitrary amount of tokens and empty out the AMM pools in a single transaction.
Even discounting that, legitimate governance decision to mint followed by immediate minting can be too much of a surprise for token holders and liquidity providers. We should give them enough time to adapt their financial strategy in response to governance decisions.
We can add an obligatory delay proxy there so that any decision to mint tokens, including a malicious one, would give the stakeholders time to weight their options and adjust. Given the speed of capital flow between in and out of YFI pools (looks like it takes less than 48 hours to shift the majority of deployed capital), I think that 7 days would be an adequate amount, but I invite the community to discuss what would the adequate delay be, I’ll tweak the proposal accordingly
Potential drawbacks
The drawback of this decision is that governance loses the ability to mint YFI quickly to respond to just in time to the hypothetical crisis at hand. The only credible situation I can think of is a “white hat hacker” scenario when there is a vulnerability and the governance tries to drain AMM pools before the hacker does as their only recourse. This doesn’t strike as plausible enough to outweigh the minting predictability that the delay proxy would give us.
FOR: Agree to implement minting delay of 7 days
AGAINST: Keep the status quo, when instant minting is possible
After the discussion comes to a rough consensus I’ll submit it as an on-chain proposal.