https://docs.yearn.fi/assets/js/18f9b5ed.f2053bdb.js

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1),"\n",(0,s.jsx)(i.h2,{id:"background",children:"Background"}),"\n",(0,s.jsxs)(i.p,{children:["This proposal is the first step in the implementation of YIP-65: Evolving YFI Tokenomics",(0,s.jsx)(i.a,{href:"#references",children:"[1]"}),". YFI is time-locked up to 4 years where a longer lock increases the relative weight in relation to other locked tokens. It is strongly recommended that the reader first familiarize themselves with the concepts of YIP-65 in order to better understand this proposal."]}),"\n",(0,s.jsx)(i.h3,{id:"out-of-scope",children:"Out of scope"}),"\n",(0,s.jsx)(i.p,{children:"The following topics were intentionally not covered by this proposal:"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Yearn Tokenomics"}),"\n",(0,s.jsx)(i.li,{children:"Gauges"}),"\n",(0,s.jsx)(i.li,{children:"Rewards"}),"\n",(0,s.jsx)(i.li,{children:"On-chain voting"}),"\n"]}),"\n",(0,s.jsx)(i.h2,{id:"motivation",children:"Motivation"}),"\n",(0,s.jsx)(i.p,{children:"This implements parts of what was was adopted by YFI voters in YIP-65, namely locking YFI into veYFI, managing one's lock, and using it to vote in governance. There are no YFI rewards or gauges yet. There is no advantage to locking early."}),"\n",(0,s.jsx)(i.h3,{id:"future-possibilities",children:"Future possibilities"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Deploy additional components of YIP-65"}),"\n",(0,s.jsx)(i.li,{children:"Transition to on-chain voting and governance"}),"\n"]}),"\n",(0,s.jsx)(i.h3,{id:"risks",children:"Risks"}),"\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"Governance attacks, mitigated by a moratorium on new YIPs being accepted"}),"\n",(0,s.jsxs)(i.li,{children:["Smart contract risk in the veYFI contracts, which have been mitigated through security reviews by Statemind, yAcademy, and ChainSecurity",(0,s.jsx)(i.a,{href:"#references",children:"[2]"}),"."]}),"\n"]}),"\n",(0,s.jsx)(i.h3,{id:"alternatives-considered",children:"Alternatives considered"}),"\n",(0,s.jsx)(i.p,{children:"None"}),"\n",(0,s.jsx)(i.h2,{id:"specification",children:"Specification"}),"\n",(0,s.jsxs)(i.ol,{children:["\n",(0,s.jsxs)(i.li,{children:["veYFI is implemented as per the deployed contract",(0,s.jsx)(i.a,{href:"#references",children:"[3]"}),", from the veYFI github repo",(0,s.jsx)(i.a,{href:"#references",children:"[4]"}),"."]}),"\n",(0,s.jsxs)(i.li,{children:[(0,s.jsx)(i.strong,{children:"DO NOT INTERACT WITH THE CONTRACT TO LOCK YFI"})," until this proposal passes. There is ",(0,s.jsx)(i.strong,{children:"NO USE"})," for locking YFI until this time. There is ",(0,s.jsx)(i.strong,{children:"NO UPSIDE"})," in locking early. There are ",(0,s.jsx)(i.strong,{children:"NO REWARDS"})," at this point."]}),"\n",(0,s.jsxs)(i.li,{children:["It's a typical veCRV style locking design:","\n",(0,s.jsxs)(i.ul,{children:["\n",(0,s.jsx)(i.li,{children:"1 lock per address"}),"\n",(0,s.jsx)(i.li,{children:"Min lock: 1 week, max lock 208 weeks (4y)"}),"\n",(0,s.jsx)(i.li,{children:"Linear decay"}),"\n",(0,s.jsx)(i.li,{children:"Extendable lock duration"}),"\n"]}),"\n"]}),"\n",(0,s.jsxs)(i.li,{children:["Immediately upon the passing of this YIP, ",(0,s.jsx)(i.strong,{children:"all subsequent YIPs are voted on using veYFI"}),"."]}),"\n",(0,s.jsx)(i.li,{children:"Voting continues to be done using Snapshot."}),"\n",(0,s.jsxs)(i.li,{children:["To reduce the risk of governance attacks by allowing enough YFI holders to lock so as not to give small YFI balances outsize influence over the protocol, a ",(0,s.jsx)(i.strong,{children:"2 week moratorium"})," on YIPs are passed. Any YIP proposal submitted in this period will only be considered for voting 2 weeks after the passing of this YIP."]}),"\n",(0,s.jsxs)(i.li,{children:["Contributor YFI is migrated into veYFI as per YIP-66: Streamlining contributor compensation",(0,s.jsx)(i.a,{href:"#references",children:"[5]"}),"."]}),"\n",(0,s.jsx)(i.li,{children:"veYFI voters may replace this voting mechanism in the future with some other design, by submitting a YIP and voting it through."}),"\n"]}),"\n",(0,s.jsx)(i.h2,{id:"references",children:"References"}),"\n",(0,s.jsxs)(i.ol,{children:["\n",(0,s.jsx)(i.li,{children:(0,s.jsx)(i.a,{href:"https://gov.yearn.fi/t/yip-65-evolving-yfi-tokenomics/11994",children:"https://gov.yearn.fi/t/yip-65-evolving-yfi-tokenomics/11994"})}),"\n",(0,s.jsx)(i.li,{children:(0,s.jsx)(i.a,{href:"https://github.com/yearn/yearn-security/pull/70/files",children:"https://github.com/yearn/yearn-security/pull/70/files"})}),"\n",(0,s.jsx)(i.li,{children:(0,s.jsx)(i.a,{href:"https://etherscan.io/address/0x90c1f9220d90d3966fbee24045edd73e1d588ad5#code",children:"https://etherscan.io/address/0x90c1f9220d90d3966fbee24045edd73e1d588ad5#code"})}),"\n",(0,s.jsx)(i.li,{children:(0,s.jsx)(i.a,{href:"https://github.com/yearn/veYFI/commit/bb9d8ac9dd90a9a9772b9663ce4fa232fda7bce2",children:"https://github.com/yearn/veYFI/commit/bb9d8ac9dd90a9a9772b9663ce4fa232fda7bce2"})}),"\n",(0,s.jsx)(i.li,{children:(0,s.jsx)(i.a,{href:"https://gov.yearn.fi/t/yip-66-streamlining-contributor-compensation/12247",children:"https://gov.yearn.fi/t/yip-66-streamlining-contributor-compensation/12247"})}),"\n"]})]})}function h(e={}){let{wrapper:i}={...(0,r.R)(),...e.components};return i?(0,s.jsx)(i,{...e,children:(0,s.jsx)(d,{...e})}):d(e)}},28453:function(e,i,n){n.d(i,{R:()=>o,x:()=>l});var t=n(96540);let s={},r=t.createContext(s);function o(e){let i=t.useContext(r);return t.useMemo(function(){return"function"==typeof e?e(i):{...i,...e}},[i,e])}function l(e){let i;return i=e.disableParentContext?"function"==typeof e.components?e.components(s):e.components||s:o(e.components),t.createElement(r.Provider,{value:i},e.children)}}}]);