YIP: Make ETH/YAM New Treasury Purchase Pool

Basic Summary

We propose to update the treasury purchase asset to ETH, remove incentives on the YAM/yUSD pool, add incentives to the YAM/ETH pool, and transition target price from 1yUSD to $1.00.

Abstract

The current YAM/yUSD pair has significant liquidity implications for those wanting to enter YAM, as Uniswap routing creates significant barriers. Once in the treasury, any transaction the treasury wishes to take also requires multiple steps to exit yUSD. By switching the treasury purchase asset from yUSD to ETH, the protocol will be able to solve the liquidity issues and allow for more future flexibility in treasury allocation.

Motivation

Solve liquidity issues and have more treasury flexibility.

Specifications

We would need to make modifications to the rebaser to purchase from the YAM/ETH pool and utilize a combination of the YAM/ETH TWAP Uniswap oracle and ETH/USDC TWAP Uniswap oracle to target a price of $1.00 as opposed to 1 yUSD. Additionally, we would need to turn off the YAM/yUSD incentivizer contract and deploy a new YAM/ETH incentivizer contract (with the same rewards to start).

Poll

  • For
  • Against

0 voters

2 Likes

I support this proposal. yUSD was a nice idea but in practice liquidity has been a major obstacle for on boarding into YAM.

100% agree this proposal

100% agree this proposal

100% agree this proposal

100% agree this proposal

Support the increase of yam/yusd liquidity incentives; oppose the cancellation of yam/yusd liquidity incentives. The possible result is that the new pool does not increase much liquidity and the old fund pool disappears directly. No one can guarantee that the liquidity withdrawn by yam/yusd will be transferred to the yam/eth liquidity pool. This is very risky.

Honestly I like yUSD idea but it has really proven to be inefficient and costly for anyone who wants to get in. Also the yUSD pool will be changing shortly then that would require a whole host of other modifications. ETH pair seems like a natural fit even tho it’s higher in risk than a stable coin and building a treasury around ETH is not a bad idea. It will also allow the treasury to farm UNI.