yLockers Budget Request 5

[dudesahn]

Scope

yLockers team will oversee...

• yLocker products, including YearnBoostedStaker (YBS)
• Treasury veToken positions and veBOOST
• V2 Curve, Velodrome, Aerodrome, and Balancer vaults and factories

For more technical details, see here.

Plan

The following deliverables will be met as part of this plan. All actions taken will in yLockers' sole discretion.

• Continue yLocker and yFactory product operations
• Launch of YBS contracts & UI for yPRISMA and yCRV
• Curve upgrades, including cross-chain veBOOST and StrategyProxy compatibility with LlamaLend
• Evaluate potential for future locker products as needed, guided by the framework outlined below.

Yearn Boosted Staker (YBS)

• YBS is a complete overhaul of the yLockers system, shifting away from only compounding yield (such as st-yCRV) to yield primarily delivered as stablecoin vault tokens
  • Users may still elect to deposit into compounding products, and existing st-yCRV users do not need to migrate unless they prefer to receive yCRV yield as stablecoins
• YBS will launch alongside a new, streamlined yLockers UI which will easily allow users to obtain the locker token, stake in YBS or deposit to the auto-compounding vault
  • yPRISMA will launch first, followed by yCRV ~1 month later
• YBS has been fully audited by yAudit

yFactory

• Curve factory vaults are still widely used, with ~$50M in TVL and partners continually requesting new vaults or deploying their own via permissionless factory UI
  • Sturdy recently integrated yvCurve-pxETH-stETH-f as collateral for their Redacted pxETH Aggregator, ~$1.2M in TVL
  • In discussions with several partners about GHO; three new GHO factory vaults recently deployed. Potential for Sturdy aggregator or other options here.

Curve Upgrades

• Finalizing the cross-chain veBOOST upgrade will allow Yearn to offer boosted yield on all Curve gauges, including several chains where Convex is not deployed (Base, Optimism, etc.)
• Adding support for LlamaLend similarly will allow Yearn vaults to optimize for best yield using both Yearn and Convex's veCRV positions
  • Will ensure cross-chain veBOOST support here as well, as LlamaLend has already been deployed to Arbitrum

Future yLocker Products

All potential yLocker products will be evaluated using the following framework:

• Revenue Potential
  • Weekly protocol fees
  • Weekly protocol bribes
  • Boost (for LP vaults)
  • Other fees (mint fees, boost rental, etc.)
• Longevity
  • Will this protocol be around in two years?
  • What type of use/growth/TVL do we anticipate?
  • Are the team committed and competent?
• Protocol Dynamics
  • Are rewards auto-locked when claimed?
    • This makes liquid lockers a necessity
    • For example, Prisma's tokenomics pushes users to claim as locked tokens to avoid a 50% haircut
• Development
  • A new locker needs:
    • YBS and rewards contract
    • YBS autocompounder yVault (st-yToken)
    • Stablecoin vault/strategy (for YBS rewards)
    • Factory for yVaults (if relevant)
    • yLockers UI updates
    • Update to docs
  • Any potential for grants from the protocol?
    • If veToken is a clone of veCRV/vePRISMA, less dev work required
• Competition
  • Do other lockers already exist?
  • Are other teams building lockers for this protocol?

Deadline

2024-08-01

People

yLockers Core team; consists of wavey and dudesahn's single-member LLCs

Money

• This budget request covers the 3 months of May 2024, June 2024, and July 2024.
• The amounts below are the per month compensation request.

Monthly Expense	DAI
Core Contributors	30,000/mo
Archive node service	200/mo
AWS	80/mo

Revenue

yCRV (st/lp-yCRV), veCRV (excl. non-tokenized): 2.5x 🔵
yBAL: 6.25x 🔵
yLQTY: 6.25x 🔵
yPRISMA, vePRISMA: 6.25x 🔵
veVELO, veAERO, veRAM: 6.25x 🔵

Note: All revenue is directed to split contracts not deployed by yLockers.

Amount (Total)

90,840 DAI

Wallet address

0x4444AAAACDBa5580282365e25b16309Bd770ce4a

Reporting

Once