Hey guys, I think its very important for us to formally think about sustainable ways to couple the value of YAM to some cashflow or fundamental value, if only for the survival of YAM long term. The goal of this post is to begin that discussion and I’m just going to list out 2 that I think has value and we can start discussing each of them in detail.
I’m sure these are not exhaustive and we can churn out a lot more: (It would be good to begin with scoring them based on some measure of ease of execution and sustainability)
1. Industrial Scale Yield Farming
- Replicate YFI in terms of suite of products
- Strategic partnerships with other communities for special farming offers (eg: work with BAL
community for additional incentives (in BAL) specific to the YAM community for providing capital to
a specific pool)
- Special farming strategies made by the YAM community
2. Meta Governance and Power Games - Be a better Powerpool. Basically straightforward yield farming in specific communities that we want community ownership in and play a role in governance. A lot of profitable revenue generating strategies may pop up in the future. ex: leasing out governance token rights at scale. We could be just scratching the surface here with what is possible, and therefore positioning ourselves to take full advantage of this could be fantastic and rewarding for the YAM community.
I agree. We should find an at least somewhat formal long-term plan for YAM is needed to provide the backbone for the project as the community rallies and builds further. As for ideas, I like your meta governance idea and that possibility, however, it seems like that would come secondary to a primary revenue strategy. On that note, I do think replicating Yearn’s suite of products could be a useful strategy. Although I would instead propose building on top of and integrating other projects like Yearn. This could then develop more yield farming partnerships.
Absolutely agree with here you here. What are some strategies you are thinking of? Deploying capital into yvaults is a low hanging fruit. Curve would be a great choice too. As far as building on top goes, doe you have any ideas?
This is a great idea. I support you.
I also had thought of yvault depositing and acting as a Curve LP, which are both sound ideas. As for others, with how often DeFi cycles, I think they depend on the future outlook of the community/product.
If the community wishes to continue down the path of lucrative and more risk-bearing strategies, YAM could focus on brand-new and experimental yield farming opportunities (much like v1).
On the opposite side, we could move towards a milder approach that builds upon audited and safe projects, possibly then accumulating voting power for proxy voting. Either way, I think beyond YFI, Curve, Aave, etc., we can wait to see what route and protocols are available later. Setting up the framework for that ahead of time is more important IMO.
Id like to see part of it go into gold backed crypto. It would set us apart if a crash occurs
I’d be a fan of doing both simultaneously. In my opinion, the more of an ecosystem around YAM we can build, the stronger it will be so that even if one sub-project or DAPP fizzles, it’s not a knockout punch.
That said, I really want us to be thinking of revenue generating ideas that are powered by YAM. By that I mean, revenue generating opportunities where YAM is intrinsic to the opportunity vs something where we could swap out any other token and get the same effect.
Creating a suite of products definitely hedges against the risk of failure, and creating a revenue generating strategy with YAM being critical to its process is definitely ideal. I was just stating that with the ambiguity surrounding the future of YAM and its community, its hard to decide on a future plan without choosing a path first.
That’s assuming we have a unite path. Save yam was a no brainer for people to band together , future direction is something different. Any decision made can be voted against and i wouldn’t be suprised if we have factions
This will sort itself in the coming months. Communication will be the key.in how effective every group is at selling an idea
Just posted this here YAMv3 Product Ideas but I think relevant on this thread as well:
These are excellent ideas and I love where the thoughts are headed. Much of the above is in the BIG IDEA category, which I think is the right way to go.
The key question at hand in my mind: what does the treasury uniquely enable?
As I laid out in my piece here, the easiest ways to operationalize the treasury are through the decentralized fund model and the financial protocol model. YFI is essentially taking the fund model –– mobilizing treasury funds to seek yield, often market neutral or long, in creative ways. I personally am not inclined to compete with YFI… The possibilities along that route though are continually growing, where protocol potential perhaps is shrinking.
One of the major things I’ll say, however, is that the industry is in a state of massive flux. I don’t think it’s 100% necessary to find THE idea in these two weeks. The view outside the DeFi window is going to be very different in 1 month, 2 months, 3 months time. But we do want to ideate like the above, though not leak too much alpha to competitors. A delicate balance.
Rest assured, I believe the wheels of many minds are turning on these issues, even if it is not showing up on the forum.
what if we used a share of the treasury’s positive rebase to purchase other interest bearing assets off the market, COMP and CREAM offer you liquidity mining rewards just for holding c tokens and cr tokens.
the yVault strategies are just selling the governance tokens and buying back the interest bearing asset, we should just do this with the rebase mechanism and laugh when the treasury reaches to the moon.