Original proposal:
Summary:
This proposal seeks to add the ynETH/wstETH pool to the Gauge Controller on Curve Finance. By doing so, we aim to incentivize liquidity, enhance the pool’s liquidity, and benefit from the Curve Finance ecosystem. YieldNest will be deploying multiple LRTs with different risk factors and is planning to utilize Curve as its main liquidity hub.
References/Useful links:
- Website: YieldNest
- Documentation: YieldNest Docs
- Github: YieldNest GitHub
- Communities: YieldNest Discord, YieldNest Twitter
- Curve Finance Pool: ynETH/wstETH Pool
- ynETH Token Contract Address: 0x09db87A538BD693E9d08544577d5cCfAA6373A48
Protocol Description:
YieldNest is a pioneering restaking protocol that optimizes restaking yield through auto-compounding curated restaking baskets that can be isolated and structured in new, novel ways. The ynETH token (YieldNest’s first LRT) represents native restaked ETH within the YieldNest ecosystem, offering users enhanced yield opportunities. The ynETH/wstETH pool allows users to trade between ynETH and wstETH, combining the benefits of YieldNest and Lido’s wrapped staked ETH.
Motivation:
The ynETH/wstETH pool requires incentivization to attract liquidity providers and deepen the pool’s liquidity. By adding this pool to the Gauge Controller, liquidity providers will earn CRV rewards, making the pool more attractive and fostering a robust trading environment on Curve Finance. We used Curve Sim to calculate the best parameters, ensuring this pool will be highly competitive and beneficial for Curve, bringing in more admin fees for veCRV stakers.
Specifications:
- Governance: Decentralization and community governance are important for YieldNest starting as an open finance protocol and plan to become a fully decentralized protocol. We are currently investigating Aragon OSx (Aragon V2) and plan to implement this once the protocol is in a more hardened and stable position. The YieldNest contracts are currently upgradeable using standard TransparentUpgradeableProxy and BeaconProxy contracts from the OpenZeppelin libraries. This is necessary given the project’s current stage and its dependency on Eigenlayer, which still makes breaking changes to the core protocol requiring logic upgrades. Admin and multisig addresses, along with their roles, are documented here and will be hardened over time.
- Oracles: YieldNest will leverage a Curve Oracle a crvUSD/ynETH oracle will be built by multiplying the TricryptoLlama crvUSD/wstETH oracle with the ynETH/wstETH oracle. We are also hardening the price feeds by implementing a Redstone and Chainlink oracle to ensure accurate and reliable price feeds for its assets, mitigating risk and ensuring precise valuation.
- Audits: Links to audits: Audits | YieldNest Docs.
Full initial system audit was conducted by ChainSecurity, with an additional audit from Zokyo. - Centralization vectors: The centralization vectors for YieldNest include reliance on a centralized Oracle. Additionally, staking rewards management and validator operations (spinning up and exiting validators) are centralized in the early stages to ensure flexibility and mobility.
- Market History: As a pre-market gauge, trading for the ynETH/wstETH pool will go live once the gauge vote is approved.
Curve Sim Parameters:
The parameters chosen for the ynETH/wstETH pool are designed to optimize performance and competitiveness:
- mid_fee: 0.005%
- out_fee: 0.08%
- A: 20000000
- gamma: 0.02
- allowed_extra_profit: 0.000001
- fee_gamma: 0.03
- adjustment_step: 0.000025
- ma_half_time: 1200 (Moving Average Time)
