These YFI haven’t been doing anything for over X hours since there aren’t proposals. Over X mil in liquidity not earning, correct?
Edited for brevity:
The rationale here is that the governance SC currently has ~25% of Yearn’s market cap which sits there unless there are YIPs. Furthermore, there are proposals to create derivatives for people outside of the Governance SC in order to allow them to vote. Why not allow the Governance SC to use a FRACTION of the liquidity to farm to increase rewards? The treasury would use the most conservative method, therefore people who want more ROI can take their YFI elsewhere. Hypothetically, by improving staking rewards you would be increasing staking and ultimately voting. Additionally if there is a set schedule of YIPs that would allow the Treasury to better allocate resources since once a vote is done, the liquidity is locked for 3 days.
Those against the idea have stated there is more risk. While there is more risk, any new idea will have risk. The project is a risk.
As the price of YFI increase and more YFI is staked, rewards will decrease which reduces buy-in and growth. This issue will need to be mitigated.