I just saw YIP 33 to add LINK as a first community-voted yVault asset.
LINK seems like a reasonable first asset, but I don’t think the system of voting with YFI makes sense for adding new yVaults.
Ultimately, YFI wants as much AUM as possible. The current system optimizes for popularity of the asset, not for the amount that people will be willing to deposit. So we’re using a weak proxy – popularity – for an important metric – how much value people are willing to deposit.
Also, a fairer process ensures engagement from across crypto communities. Imagine if $COMP is more popular in the community, but $AAVE could produce better yields. $AAVE could be consistently voted against despite having the potential to produce big yields. This damages the profitability of the network and
Voting for yVaults should be a competition based on the amount of capital people have added.
So to solve these issues I informally propose—
- whenever Andre has capacity to add a new vault he triggers a competition on-chain
- asset holders are notified and add assets as a vote
- After 3 days, the asset with the greatest depth wins
This is a pre-emptive change which doesn’t solve an urgent problem. But I believe it solves an important problem. If we are going to become dominant we need to be able to prioritize non-urgent changes to improve the effectiveness of our decision-making.
What’s more, although LINK is a popular choice, I don’t think it’ll be long before community infighting breaks out over which assets to support.