Buy 1% of the YFI supply at a price of ~$35k but not exceeding $40K. (~13 million at the time of writing)
The yEarn ecosystem has built a robust channel in the DeFi space and it is in the best interest of KeeperDAO to gain exposure to and influence over it through the native YFI governance token.
Bring utility and visibility to the ROOK token.
- The addition of a ROOK yearn vault
- Onsen rewards for Sushi LP’s
- Addition of ROOK as collateral on CREAM
- Addition of a ROOK Jar on Pickle Finance
Whitelisting of flash loans on Iron Bank for keepers
- Makes our current LP model redundant allowing for the liberation of all of our treasury assets currently locked there to be used by the community.
Increase our control of CRV votes.
- YFI is the second-highest controller of CRV votes and acquiring a substantial stake in their ecosystem will further enable us to influence CRV yield.
Earn/claim yEarn pool rewards.
- yearn.finance interest
- curve.fi/y trading fees
- ytrade.finance leverage fees and liquidation bonuses
- yswap.exchange system fees
- iliquidate.finance liquidation bonuses
- system dust (unassigned interest or fees)
The current use of our Liquidity pool is to cover loan positions in the HV in the event of a liquidation using JITU and to be used for flash loans to extract MEV on Ethereum. The latter locks up a significant amount of capital in our LP preventing it from being used in more novel ways by the DAO. If this acquisition enables the whitelisting of KeeperDAO keepers to take out collateral-free loans from Iron Bank and also leads to non-native staking for the rook token then the utility gained through this YFI buy is outweighed in my opinion compared to the financial cost of it.
- The YFI acquisition is at the discretion of the core team
- The acquisition is contingent on KeeperDAO whitelisting for flash loans on Iron Bank
- The acquisition is contingent on KeeperDAO the creation of a Rook yVault
The limitation for this KIP is very simple if the yearn devs are not ok with granting conditions 2 and 3 from the specifications then the majority of the value from this KIP is lost and the pursuit of YFI would be fruitless for KeeperDAO.
Authors: Curmudgeon, Trepe, YungPeso, Barry