YFI Minting Ownership

Ownership of YFI minting now rests in the hands of the community.

A 6/9 Gnosis Safe multisig has been granted full rights over the YFI governance contract as we establish a more extensive timelock to further distribute central points of failure.

In addition, setGovernance - the function to change the governance owner - is subject to a 3-day time lock.

Lastly, Andre has removed himself from the minter set, meaning he no longer has the ability to mint new YFI.

This means no YFI minting can be done for a minimum of the next three days.

Here’s some more context on what (and who) this entails.

What is the governance contract?

The governance contract is responsible for dictating the addresses (minters) which can issue (mint) YFI.

What does this mean?

In the immediate short-term, no new YFI can be minted as there is no minter and the time-lock prevents one from being set for a minimum of 3 days.

What does ownership of the governance contract mean?

The owners of the multsig can only set minters. Everything else regarding YFI and the yEarn protocol is determined through normal governance (33% quorum, 50% majority) using onchain voting. (ygov.finance/vote)

For more details on how voting works, please see this forum post.

What can the mulitsig do with the governance contract?

The multisig contract CAN NOT mint additional tokens. Should the community decide this should change, a vote can be enacted to add a minter so that YFI can be issued.

Should Proposal 0: YFI Supply fail, the multisig will ensure that issuance can never happen by never adding a minter, effectively capping the total supply of YFI at 30,000 in perpetuity.*

*This is likely to be updated with more finality over the coming days.

How does a multisig work?

The governance multisig is controlled by 9 community members and requires 6 signatures. This means that no transactions can be processed until the 9 signers have reached at least 66.67% consensus.

If consensus is reached, the multisig address will execute transactions on behalf of the YFI governance contract.

Who are the signers?

9 community members have agreed to act as signers of the multisig as proven by social proof from each of their respective Twitter accounts (basically their entire social reputation).

These signers (in alphabetical order) are:

  • Calvin Liu using this address [0xb0325DbE7fA891436E83A094f9F12848c78e449b] verified by this tweet

  • @Coopahtroopa using this address [0x59171b87817C5F07157066Bd5284707A711229B3] verified by this tweet.

  • cp0x.com using cp0xcom.eth [0x74630370197b4c4795bFEeF6645ee14F8cf8997D] verified by this tweet

  • Curve.fi using yfi.curvefi.eth [0xFe45baf0F18c207152A807c1b05926583CFE2e4b] verified by this tweet

  • @damir.bandalo using this address [0xa83838221278f22ee5bAe3E523f34D42b066D67D] verified by this tweet.

  • @Daryllautk using daryllau.eth [0x99BC02c239025E431D5741cC1DbA8CE77fc51CE3] verified by this tweet

  • @devops199fan using this address [0x48f2bd7513da5Bb9F7BfD54Ea37c41650Fd5f3a3] verified by this tweet

  • @banteg using yfi.banteg.eth [0x7A1057E6e9093DA9C1D4C1D049609B6889fC4c67] verified by this tweet

  • @milkyklim using yfi.milkyklim.eth [0x0Cec743b8CE4Ef8802cAc0e5df18a180ed8402A7] verified by this message.

Next Steps

The community is exploring a more extensive time lock so that any major changes to the governance contract may undergo significant periods of time (in DeFi terms) before the YFI supply could ever be adjusted.

In tandem, the community will look to set up a formalized DAO, further distributing ownership of governance beyond 9 trusted community members to YFI token holders at large.

We’d like to thank the community for raising concerns about the governance contract and the potential for YFI hyperinflation. We hope that this step can serve as a short-term peace of mind until further actions are taken.

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This is an incredible confidence booster. Thanks for all the ones involved in making this a reality.

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Could you clarify this? So currently there’s no minter - if proposal 0 fails, it stays like this.
Could a future proposal change this and add a minter? Or is there no possibility to add a minter later if proposal 0 fails?

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It will be possible to add a minter in the future even if proposal 0 fails.

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The power to mint is in the multisig. So its still possible to mint. That power can later be transferred to a contract that invokes mint through governance. So all good.

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iearn is moving boundaries of DeFI to other levels ! :fire:

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Thank you for the detailed post!

Regarding a formalized DAO, what are the current thoughts on this? Is there a new Governance interface being built out, or has there been consideration around utilizing an existing DAO structure like Aragon? Governance seems to be a bit bifurcated between the on-chain proposals and forum proposals.

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A community member has summoned a DAO specifically to reward contributors with funding to continue pursuing work in the yEarn ecosystem. Happy to loop you into the conversation if you’re keen to get involved!

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Interested! :slightly_smiling_face:

had a question about the multisig and posted it in the Quantstamp post

The multisig seems to enable unlimited YFI printing (as the original concern) but after reading the minting ownership post, it seems that the multisig can only activate if there is a passed proposal.

Question: If the activated proposal requests 1000 YFI, this means the multisig can only create the requested amount by the proposal? The multisig cannot create less or more?

The multisig can’t do anything but schedule a new governance contract and switch to it after a 3-day timelock. No minting functions are present in the current governance contract. Technically we can transition to Maker-style spells which can do only one thing once.

Ok, so at worst they could theoretically switch to a new gov contract without consent, but with a 3 day delay before it becomes active, it gives everybody a heads up that something bad is happening. Thats cool. Thanks.

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Agree with this 100%. Good stuff.