MIP10c9-SP29: Subproposal to Whitelist Yearn Finance on UNIUSD, LINKUSD, AAVEUSD, COMPUSD Oracles

Preamble

MIP10c9-SP#: 29
Author(s): Daniel L
Contributors:
Type: Process Component
Status:
Date Proposed: 2021-05-31
Date Ratified:

Specification

Introduction

Yearn’s core product is Vaults. A vault takes a specific base asset as deposit, which is then delegated to Strategies that farm and recycle rewards back into the specific base asset of the Vault in question. A more complex product is a Delegated Vault, which leverages a certain base asset to borrow another asset that is then delegated to a Vault.

Yearn has previously been whitelisted for the following Maker Oracles:

These vaults function in a similar way: The corresponding strategy of each vault takes the underlying asset (YFI, BTC, or ETH) and opens a Maker CDP with it as collateral to draw DAI against. This DAI is then delegated to the Yearn DAI Vault to earn income. The strategy relies on the next OSM price in order to effectively and securely manage its CDP position, performing rebalance and unwind operations as required.

We are currently expanding our Maker-based strategy family to support four additional assets: UNI, LINK, AAVE, and COMP. The new strategies will operate in the same manner as those powering our existing yWETH, yWBTC, and yYFI vaults.

In order to manage the CDP positions in an efficient and risk minimized way, we wish to have access to the corresponding OSM prices. As before, we use permissioned proxy contracts, in the event new strategies that require the OSM emerge. They are controlled by Yearn’s Governance.

Oracle Name

  • UNI/USD
  • LINK/USD
  • AAVE/USD
  • COMP/USD

Customer(s)

yearn finance - Andre Cronje ([email protected])

Whitelist

UNI

yearn finance - 0x6987e6471D4e7312914Edce4a6f92737C5fd0A8A - OSM

LINK

yearn finance - 0xCd73F1Ed2b1078EA35DAB29a8B35d335e0137c83 - OSM

AAVE

yearn finance - 0x17b20900320D7C23866203cA6808F857B2b3fdA3 - OSM

COMP

yearn finance - 0x4e9452CD5ba694de87ea1d791aBfdc4a250800f4 - OSM

Requirements

For each customer address to be whitelisted:

  • Is the contract source code verified on etherscan? yes
  • Is the Oracle data used in a permissioned manner that would prevent parasitic behavior? yes
  • Is Oracle data written to storage? no
  • If Oracle data is stored, is it stored in a private variable? not stored
  • If Oracle data is stored, is the value accessible on-chain exclusively by the protocol? not stored

Fee

yearn finance - ROMP

7 Likes

P.S. I thought it would make sense to bundle these four requests into one as they are very similar in nature. Not sure if I deviated from protocol here. If you prefer to have them as four separate proposals, please let me know and I can break them out.

2 Likes

Nope, together is good, thanks.

3 Likes

The Oracle Domain Team has reviewed and approved the proposed smart contracted to be whitelisted. They will be included in the next round of Polling Votes and, if ratified by Maker Governance, in the following Executive Vote.

1 Like

I have a question, why do we base the price of those assets in USD? And isn’t it DAI at the time of the OSM?

Because if the dai is at 1.02 there is an incentive bonus of 2%. Which makes less sense now with the PSM.

You are right, on second thought, it would not be advisable to rely on us for possible attacks or price hikes of DAI.

It would be great if this could be expedited, we have LINK strategy live in production already.

3 Likes

This is going up for an Executive Vote tomorrow.

2 Likes

amazing news!!!

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