YIP-200: The Next Phase of YAM

YIP-200: The Next Phase of YAM

Summary

Hey everyone this is Feddas, I’ve been following YAM since it’s launch and a contributor since October 2020. For the past year I’ve been attending weekly meetings with the contributors as a YAM token holder (upaid) trying to revive the value of YAM.

The problem: Why the total value of the YAM token is lower than the Treasury Value:

  1. No faith on contributors to add value to the token. Since I came back late 2021, there was 0 live projects at YAM, there was a handful of contributors none of which were working on a revenue generating project.
  2. The treasury was spending a significant amount of money paying the contributors. ~$76,000/mo spent for contributors in Q4 2021.
  3. Most Token holders did not want to spend the time to read and understand what was going on and how to help, instead many of them sold their tokens.
  4. Macro environment is very bearish.

My solution: First stabilize, to give the potential and possibility for YAM to rebuild:

  1. YIP-114 - A adjustment of current treasury assets to earn yield ~8%+ on entire treasury using blue chip Yearn Vaults. With a $3 Million, the treasury would earn ~$240,000 a year. Current treasury yield is less than 1%.
    YIP-114: Yam Treasury Management Strategy, Yield Farming, Protocol Owned Liquidity
  2. Discontinue minting of $YAM for yield farmers. YIP-114 discontinues the yield farming rewards for YAM/ETH LPs and creates Yam Treasury Protocol Owned Liquidity (POL).
  3. I would also like to end minting of new YAM for contributor compensation. I believe YAM should be self sustaining. If expenses were managed properly, we should be able to pay all expenses with the yield generated from the treasury and have a surplus.
  4. If we are to pay contributors, we should pay in 6 month vested $YAM that is market bought using yield.
  5. Any additional yield should be used to create more YAM/ETH POL.
  6. Go find/build/partner with projects that can provide long term value back to YAM. Solutions 1-5 are a stop gap to #6, but as long as we do not have #6, we need to conserve and actively search.
  7. All contributor compensation and operational expenses should be limited to the yield generated from the treasury. While this will be a tough requirement to meet, I believe it is possible and it creates long term self sustainability. Also as we move back into the bull market, the yield increases and additional contributors can be supported.

No, this isn’t a permanent solution to YAM. There will be people better than I that will be able to take this solution and build greatness upon it.

Why?

YAM DAO is like any organization, if the money is gone, there is very little you can do to build. In the current bearish environment, it is prudent to preserve protect and consolidate, survive to fight another day.

I am an believer and investor in YAM, I am not supreme commander nor do I want to be. Right now people have lost faith in YAM, people have forgotten about YAM, people aren’t interested in YAM, people have discounted what YAM can do.

Most DeFi projects start building with an idea in mind, then they find the funds to do it (if they need to). Yam on the other hand has a treasury to support a project but no real project. Here are some additional specifications to do this:

Specifications / Poll - How am I proposing it is accomplished?

Expanding on my solution from above:

  1. YIP-114 is already in progress. It’s been delayed because of the politics of current contributors. I plan to personally complete the asset rebalancing with or without other contributor help.
  • Do what it takes to continue
  • Stopppppp

0 voters

  1. My current plan is to create the POL in a multisig primarily because the transactions fail trying to do it using the on-chain transaction with the 5 day timelock to execution. It fails because if there is a buy or sell in the 5 days timelock on the YAM/ETH pool, it changes the deposit amounts.
  • Do what it takes to continue
  • Stopppppp

0 voters

  1. Incentives will end at the same time the YAM is minted for the POL (YAM is burned if ever unwound).
  • Do what it takes to continue
  • Stopppppp

0 voters

  1. Use the yield to buy YAM off the market and use Stablier to stream YAM to contributors with 6 month vesting.
  • Yes, any compensation should be vested
  • No, do not vest compensation

0 voters

  1. Any additional will be used to buy YAM and ETH, then paired and sent to the treasury.
  • Yes, more POL
  • No do not buy more POL

0 voters

  1. In YIP-114, I’ve allocated $396,000 in stable coins to a “Operations Reserve” which was primarily for contributor compensation (Designed as a 1 year runway for contributor compensation), but with this plan we won’t need it. Contributors should be actively trying to find/build/partner with projects that can find long term value to YAM. The “Operations Reserve” will be turned into a “Builders Reserve” where this money is allocated to fund grants and business developers (anyone) who successfully get grants funded.
  • Change Operations Reserve to Builders Reserve
  • Do not change

0 voters

  1. All contributor compensation and operational expenses should be limited to the yield generated from the treasury. While this will be a tough requirement to meet, I believe it is possible and it creates long term self sustainability. Also as we move back into the bull market, the yield increases and additional contributors can be supported.
  • Yes all expenses should be limited by Treasury Yield
  • No keep it open

0 voters

PS: Yes I skipped a bunch of YIP numbers up to 200. This is for the person who I know will point this out.
PPS: If the polls don’t get at least 5 votes from community members, I am ignoring them and going to snapshots.

1 Like

I think this gets at a very important point, what you are proposing in YIP 200 and have been trying to implement over the past few months is not fun, but necessary and it’s also not the end of the book just the beginning of a new chapter that will require an active community to write with new momentum shifting ideas that bring value instead of drain it.

i havent been here for ages, but i feel this is an interesting proposal in general…but i think there is very a few people still holding YAM, proposals are hard to pass the snapshot vote.

1 Like

Hey @siriusye, long time no see! If you like the proposal, please vote and add comments. I am working very hard to protect Yam’s treasury for long term. I will be putting this up for snapshot and I will be able to get enough votes.

Feddas

1 Like

i have no yam token at all, so i have no way to affect the DAO lol

This proposal is lacking and pushes yam to failure, as i mentioned on what actions youve been key element for what we have arrived now to, and youre still going. The ideas and efforts to build and progress on yam were destroyed by your gatekeeping and obstruction against everyone other than yourself. Thats no difference, it only freezes yam and have you control it the same way youve been up to, which i dont support.

And whats with yip “200” or is that also something you entitle for? Last i remember the yip number was around 115.

You continue to say that “build and progress” on Yam with your “Core Development”, no one has supported your “Core Development” it wasn’t even approved. Find me some other community members that support your “Core Development”.