MIP10c9-SP6: Whitelist Yearn Finance on ETHUSD Oracle

MIP10c9-SP6: Subproposal to Whitelist Yearn Finance on ETHUSD Oracle

Preamble

MIP10c9-SP#: 6
Author(s): Artem K
Contributors:
Type: Process Component
Status:
Date Proposed: 2020-08-23
Date Ratified:

Specification

Introduction

Yearn’s core product is Vaults (example) which allow staking certain assets which are then delegated to Strategies (example) which recycle the rewards back into the base asset. A more complex product is Delegated Vaults which leverage a certain asset to borrow an asset and delegate it to a Vault.

We are currently building (work in progress) such a delegated vault strategy for the ETH Vault. It will maintain a Maker Vault and and delegate the drawn DAI to the yearn DAI Vault. To make the strategy safer and more robust, we require an ability to incentivize people to save the Vault from liquidation. To verify this on chain, we need access to the next OSM price.

We’ll be using a permissioned proxy contract should new strategies requiring the OSM emerge. It is controlled by yearn’s governance.

Oracle Name

ETH/USD

Customer(s)

yearn finance - Andre Cronje ([email protected])

Whitelist

yearn finance - 0xCF63089A8aD2a9D8BD6Bb8022f3190EB7e1eD0f1 - 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

12 Likes

I 200% support this.

While you’re at it, also add YFI as collateral to mint Dai. And Yearn will create MKR vaults as a gesture in return.

I am very happy to see the changes in the Maker community. We should always maintain the spirit of exploring new things, not conservative.

With respect, I believe YFI to be far too young and volatile to be considered as a asset class for Maker Vaults. I’m entirely for expanding the collateral types, but there’s good reason the MakerDao team has gone slow on new collateral types. I see no reason to add YFI as a collateral type, other than personal gain. YFI is meant to be a governance token afterall, NOT a store of value. Just my 2 cents

2 Likes

This proposal is not to add YFI as collateral, merely to allow yearn vaults read access to the Maker Oracles

I am completely in favor. This is a huge use case for Maker Vaults that will be beneficial for everyone

5 Likes

The Oracle Team has done the due diligence on the contract source code and verified the claims of Oracle data usage behavior. This proposal is ready to be voted on by the community.

9 Likes

On a separate note I’d like to point out that delegated vaults align with Dai peg incentives really nicely in that they find profit seeking opportunities and stimulate Dai generation which we desperately need right now. Because of this I will be posting a Signal Request thread to fast track inclusion of this proposal into this coming Friday’s Executive Vote.

7 Likes

Oh I know, I was just responding to the person who threw that out as a suggestion/request.

1 Like