[YFI] - MIP6 Collateral Onboarding - yEarn

As an easy reference:
YFI (looking at coingecko):

Market Cap: 460 million
24h Trading Vol: 102m.

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I think we will definitely see more Dai being minted from YFI compared to KNC and ZRX.


Yfi has a good marketcap and liquidity
a real product
and significantly decentralized
It is better than a lot of other erc20 tokens


Great reply Nik. Great to hear about the behind the scenes methodology. We appreciate the transparency.


Thanks for the details @NikKunkel I think it is very much compatible with my post (but with added elements) which was only a summary of a @LongForWisdom post (below). The misconception you point is maybe on the influence the Foundation has on your work (item 2 and 3 below). Both ways (and everything between) are okay to me.

To be clear, while this is technically true (and was an input into the onboarding process), in practice I’ve not witnessed anything that makes me think the Foundation does attempt to control the current domain team members in their selection of collateral to onboard.


Can we fastrack this also through signals? @NikKunkel

Outside of emergencies, the domain teams follow a fairly rigid process in terms of onboarding collateral. Onboarding new collateral types isn’t as quick or easy as whitelisting a new address for one of the oracles.

Even if the community did signal to onboard YFI immediately, the domain teams would still need to do domain evaluations of the collateral before it could be onboarded.

In practice, we have not done this outside of emergency situations. I would strongly recommend against trying to onboard new collateral outside of the process, absent an emergency.


AAVE has onboarded YFI. Though should’ve been expected.

Alright. When you’re right, you’re right. We can wait.

Btw YFI got listed on Aave markets today and a proposal has also been submitted by ParaFi at Compound. Things moving in a good direction. I hope MakerDAO passes YFI for collateral :slight_smile:

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One advantage Maker has over Aave or other lending protocols is that in Maker, the asset can only be used for collateral, and isn’t lent out.

This makes it safer to deposit governance tokens as collateral in Maker than in Aave, Compound, etc.


I wonder if there’s a way for the vault holder to retain voting ability while their tokens are locked? Would be a cool edge for Maker.


For tokens like COMP that have the governance features baked in it would technically be possible to engineer a vault to be a proxy for this right? For something like MKR though it would need an iou token that the chief contract could read right?

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Staking to the YFI governance contract also earns yield, it would be really cool for vault users to be able to capture this in addition to voting.

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That would require tokenising maker vaults.

Well, it doesn’t need to be done on our side.

YFI could tokenize Maker Vaults that hold YFI. And allow that to be used for governance, since it doesn’t have the problem of double votes.

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If yYFI vault strategy is using Maker Vaults, minting Dai and yield farming, then yYFI becomes the tokenized version. Then yYFI could be whitelisted for voting in Yearn governance.

However, if someone who opens YFI vaults directly on Maker(not through yYFI vault), they won’t get any token that way.


For record, YFI’s volume on Binance just today is over 340 million.
Volume on Uniswap for last 24 hours is more than 47 million.

There are also 3 derivatives markets for now, I expect more soon. And YFI is listed on multiple exchanges in the spot markets and more will add in the future.

So liquidity isn’t an issue.


YFI has high volatility, a short track record, and tons of key man risk …

I agree but that’s why debt-ceilings start low and get increased over time.

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What does “awaiting community greenlight” mean? @LongForWisdom