SDGP-41 : Remove sdYFIYFI VBM from the SDT Gauge Controller and migrate sdFXSFXS VBM from Curve to Fraxtal

Governance Proposals (SDGP)
#1

Author: @chago0x

Summary:

This proposal aims to remove the Vote Bounty Manager (VBM) for the Curve sdYFIYFI gauge from the SDT gauge controller and migrate the VBM for sdFXSFXS from the Curve mainnet gauge to the Curve Fraxtal gauge.

These changes are designed to optimize incentive structures and align with current ecosystem developments.

Motivation:

The removal of the sdYFIYFI VBM is proposed because sdYFI liquidity is now incentivized through dYFI, and the primary LP used is the Yearn sdYFIYFI vault. This makes it less optimal to incentivize the Curve sdYFIYFI LP for Stake DAO.

The migration of the sdFXSFXS VBM from the Curve mainnet to the Curve Fraxtal gauge will better align with Frax ecosystem developments while maintaining the VBM on the Curve Votemarket.

Proposal Specifications:

  1. Remove the sdYFIYFI VBM from the SDT gauge controller.
  2. Migrate the sdFXSFXS VBM from the Curve mainnet gauge to the Curve Fraxtal gauge.

Admin: veSDT holders
Community Feedback: Minimum of 3 days
Voting Duration: 7 days

  • YAE
  • NAE

0 voters

2 Likes
#2

So is there going to be a market for yVaults on Votemarket developed then where you incentivize this and other yVaults? Because you’ll only have the voting power of the liquid locker to direct rewards to this pool and if it goes off peg again I am not sure what would incentivize it to be rebalanced. Also I think it will discourage anyone to mint more sdYFI as the yield will be pretty low once LPs move over from the Curve gauge to the yVault gauge.

#3

The dYFI gauge voting mechanism is currently off-chain, limiting Votemarket’s applicability as it’s designed for on-chain solutions. If Yearn transitions to on-chain dYFI gauge votes, Votemarket could certainly become a viable option for incentivizing votes.

2 Likes
#4

@chago0x will you be removing the 10% Liquidity incentives for sdYFI/YFI pool fee as well then on the YFI liquid locker if you are no longer providing vote incentives to this pool?