TAP 8 - Yearn Finance Whitelist
Summary: Seek authority from the community to whitelist Yearn Finance for depositing of idle reserve assets.
Background: Recently the DAO has been accumulating additional reserves assets such as wBTC and additional amounts of DAI through swapping out of LUSD to maintain governance approved market capitalization exposure of 5% total supply via OIP24: Add LUSD to the Treasury. The DAO is now seeking the ability to deposit idle reserve assets in Yearn Finance to further increase the backing of OHM.
Motivation: Whitelisting Yearn Finance will allow Olympus to earn yield on idle reserve assets to help bolster the backing of OHM and grow the treasury. The DAO will adhere to the treasury framework of no more than 25% of excess reserve assets to a protocol. However, this is just a limit and the DAO will assess the optimal distribution on a per asset.
Description from https://docs.yearn.finance/getting-started/intro: Yearn Finance is a suite of products in Decentralized Finance (DeFi) that provides yield generation, lending aggregation, and more on the blockchain. The protocol is maintained by various independent developers and is governed by YFI holders.
Risks: There is inherent smart contract and platform risk involved with managed vaults, this is evident through past exploitations of specific yearn vaults. Each vault contains their own individual strategies. The protocol will rotate funds between these strategies to determine what has the most optimal yield for that particular asset. The strategies vary in risk and they also incur the risk of each platform. Each platform contains their own smart contract or platform risks.
Protocol Analysis: Using a risk analysis framework developed by the DAO, the Policy and Partnerships teams have attempted to score various protocols based on some subjective and non-subjective data. Yearn scored a 3.2 out of 10. This is due to inherent risks associated with managed vaults and inherent protocol risks not only of Yearn but also where the assets are deployed to.
The following risk analysis shows the outcome of the Treasury Team’s holistic assessment of the proposed platform and intended strategies. Lastly, one final reminder that this score is an average that was derived from an generalized assessment of the platform which includes TVL, audits, protocol age/risk, targeted investment and strategy type.
https://docs.google.com/spreadsheets/d/1MKlokK8nG_xOvo6rmItemGM6IOTs-7K536J_zfHTMsY/edit#gid=0
More context: https://forum.olympusdao.finance/d/1125-tap-8-yearn-finance-whitelist
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x3143...B0e10A | 57,167 | Approve TAP 8 |
 0xf5B4...d99A72 | 10,215 | Approve TAP 8 |
 0x318A...E22C67 | 7,702 | Approve TAP 8 |
 0x6a5d...62B188 | 4,204 | Approve TAP 8 |
 0x2ad0...9baD36 | 3,143 | Approve TAP 8 |
VOTE POWER
Proposal Status
- Tue March 22 2022, 05:12 amVoting Period Starts
- Fri March 25 2022, 05:12 pmEnd Voting Period
Current Results
1-Approve TAP 8
109,428.268
2-Reject TAP 8
1.92