A word on the PSM concept and next steps for the Foundation

The Dai-YFI pool isn’t worthless. It is being used - current turnover is around 7% per day.

Trying to understand this. So this is a 98% DAI, 2% YFI pool. I assume Yearn is awarding YFI tokens for providing liquidity to this pool. Then liquidity providers take their rewards and want to add them back into the pool to compound. In order to do this, they take $2 in YFI rewards and source $98 worth of DAI on the open market in order to add more liquidity to the pool?

Every time I look at that pool, a few million more DAI have been added to it.

The curve pool is losing qualification for YFI today. Probably a lot of that capital will migrate into the BAL pool (I moved mine last night). So likely a huge slug of additional demand on deck as the curve pool is bigger than the BAL pool and has very little Dai in it.

@rune, I wanted to say you gained a lot of my respect for killing this. It took a lot of courage and leadership - something this project needs more than ever. Great work, seriously.


I absolutely agree, I know @rune was pushing hard for the PSM so it was refreshing to see it dropped in response to what I saw as significant push back from at least some community members. Really stuck with his guns on community approval being necessary for policy changes like this.