YIP 34: Add Synthetix (SNX) to yVaults

Summary:

Add Synthetix (SNX) as the second volatile asset to be used as collateral in delegated yVaults.

Abstract:

Add Synthetix (SNX) as the second volatile asset to be used as collateral in delegated yVaults.

Motivation:

Additional assets are necessary in order to generate more revenue for the protocol and grow the ecosystem. This proposal nominates SNX as the second volatile asset to be used as collateral. While other tokens have polled higher, the strategy for SNX has already been developed and will be quicker to launch.

Rationale:

Synthetix stakers currently incur regularly high gas costs when claiming minted SNX rewards on a weekly basis. With the addition of SNX to yVaults, smaller SNX holders will be able to either allow their rewards to compound or claim them on a regular basis at very low gas costs. This inclusive model will likely draw small and large SNX holders alike, further increasing AUM and driving fee generation for YFI holders. While other tokens have polled higher, the strategy for SNX has already been developed and will be quicker to launch as a vault.

For: Add SNX as the second volatile asset to be used in delegated yVaults.

Against: Don’t add SNX.


Ref:

17 Likes

I do have a concern that letting yLINK run longer or yvault platform be audited would make me feel more easy about yearn holding so much liquidity this early. It’s great to grow the ecosystem, which takes both success and avoiding undue risk. That said being the proposal is only for 1 additional asset, which seems conservative to me while allowing for proof of yvault concept using various tokens, I am FOR.

3 Likes

ermm, could people voting against explain themselves please?

1 Like

Good move, we will vote for SNX yVault.

4 Likes

What is the vault going to do with its snx debt, susd?

I shall vote in favour of SNX :+1:

3 Likes

I’ll vote for SNX yVault :fire:

3 Likes

So far this vote is a lot closer than I expected it to be. Am I missing something here? What is the case against adding SNX?

Looking at the code of the test contract 0x2288C409e67b6CE52180f97A8Cddf7abC24eC989 this is what it does in a nutshell:

Deposit SNX:

  • Stake SNX
  • Mint sUSD (Get rewarded SNX + sUSD)
  • Mint yCURV (Get interest from lending protocols)
  • Stake yCURV in SNX pool (Get rewarded SNX)

Harvest and Compound:

  • Mint more sUSD from the earned staked SNX (Rinse and repeat)
5 Likes

How does this work with the SNX rewards that are locked-up for a year?

1 Like

The harvest() function can claim them, but that obviously just happens after 1 year.

3 Likes

Voted for.

Will liberate a lot of small SNX holders for which current SNX staking is not feasible due to the high cas costs.

6 Likes

Should the sUSD not be divided into other synths to match the debt pool to remain neutral?

2 Likes

Please could you describe the steps for LINK (I know it’s not relevant to SNX but this is the clearest description I’ve seen for a specific token).

1 Like

I don’t see any reason not to include SNX in the yvault :slight_smile:
@Mr_Sadim’s suggestion seems decent!

Proposal passed . 90.40 % for, 9.60% against, 41.95% quorum.

7 Likes

Check out this post, I think it explains quite clearly what it does: https://medium.com/iearn/delegated-vaults-explained-fa81f1c3fce2

3 Likes

Not my suggestion. This was what was written in the code already.

1 Like

Where can I find document which describes how SNX yVault deal with escrowed SNX? As you know newly minted SNX will get escrowed for 1 year.

Can we please put ETH on the list soon? Everyone wants to maintain ETH exposure and farm with it. And lending ETH isn’t as efficient.

4 Likes