Yearn has been committed to seeing this come to life since the Pilani thread back in June. This program will unlock a sustainable economic force of incentives to inspire builders to come to AggLayer and grow the ecosystem and the best part is there are no additional resources required. This simply is a creative use of things that already exist to amplify growth.
Yearn vaults have evolved in the past couple of years with the launch of V3 tokenized vaults. These 4626 compliant vaults today give users access to a spectrum of risk based on their choosing. For instance, yvWETH-1 deposits to Aave, Compound, stETH and yvWETH-2 has a slightly different risk profile depositing into Across, Sturdy, Gearbox, Euler, and even yvWETH-1 if those yields happen to be higher.
Yearn V3 is automated too. Every 60 minutes we take a look at onchain data and use an offchain algorithm to determine the best allocation. We take into consideration all factors like dilution, slippage, gas costs, max debt ratios, and how quickly debt ratios can be reduced. If all parameters are met within our onchain guardrails, the execution of the new allocation is automatic.
For this implementation we’ll use our most proven strategies from Aave, Quickswap, Curve, and any other Polygon or AggLayer project most aligned with growing the ecosystem together.