Yearn LTIPP Application - FINAL

Archive Long Term Incentives Pilot Program
4

We appreciate the process and feedback. We’ve had a chance to improve this proposal:

Summary of feedback from votes against:

  • Incentive mechanism
    • Very little activity and TVL on Arbitrum today
  • Execution plan
    • No milestones over the 12 weeks
  • Grant Justification
    • Lack of net-new in-flows to Arbitrum

Responses:

  • Very little activity and TVL on Arbitrum today
    • Back when the $ARB token went live, the pool of up-only Yearn strategy possibilities was very small on Arbitrum. We were only able to make strategies that had no exposure to IL, could take large deposits with little slippage, and were essentially lossless. DeFi activity on Arbitrum was booming, but did not align with these prerequisites.
    • Today we’re in a much better position. We’ve released Vaults V3 that allows us to open up Yearn strategies to a new spectrum of risk. In the past 30 days we’ve released 21 new vaults and strategies, with most of those coming out in the past 7 days.
    • We’ll ensure creative communications through Yearn twitter and other social channels.
  • No milestones over the 12 weeks
    • We’ll divide incentives equally over 12 weeks and begin a push for both lending liquidity and yield boosts.
    • We propose the following milestones with the understanding that we will not receive the next stage of incentives if we do not cross the goal TVL:
      • Weeks 1-4
        • Goal: $10 million
      • Weeks 5-8
        • Goal: $20 million
      • Weeks 9-12
        • Goal: $30 million
  • Lack of net-new in-flows to Arbitrum
    • We will prevent cannibalization between yield seekers by omitting Stargate, Curve, and Compound strategy boosting directly as these 3 farms exist on Arbitrum today.
    • We will enable net-new in-flows to Arbitrum through our Superform integration, a hub of L2 to L2 activity for Yearn: Superform | Earn Yield & Distribute Vaults

We will focus on net-new strategies to Arbitrum that will grow:

  • Pendle Penpie strategies
  • Silo lending liquidity
    • Since the submission of this original proposal, we’ve engaged Silo to onboard to Juiced Vaults with the goal of net-new in flows to Arbitrum
  • Llama lending liquidity
    • Since the submission of this original proposal, we’ve planned to onboard to Juiced Vaults for Llama Lend with the goal of net-new in flows to Arbitrum
  • Ajna lending liquidity
  • Gamma LP strategies
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