Yam

This proposal would shift governance away from YAM to instead use BPT from a balancer pool with 80% YAM/20 WETH similar to Aave’s new governance system outlined here - https://medium.com/aave/aavenomics-eeab650cccc2. This proposal would also add functionality to the rebaser to call gulp() on this pool during rebase. This would make liquidity added to the pool safe from losing funds during rebase. This proposal does not include any additional incentives to be provided to LPs on this pool.

Reasoning: This would massively increase YAM trading liquidity over the current system where people must hold YAM in their wallet to participate in governance. With a modest fee of 1% on the balancer pool, LP’s can reasonably expect a three figure APY from fees alone. It would be easy to get YAM whitelisted for weekly BAL rewards as well. Calling gulp() during rebase will protect LP funds from being stolen as is typically the case with rebasing tokens on balancer.

This would be a novel approach to governance but the benefits are significant. Governance participants would see a very high APY while significantly increasing YAM liquidity for trading and it requires no incentive on the part of YAM protocol.