Governance

Not your typical Governance clone.

Yearn Generation of Yield serves as a testbed for an exciting new governance platform that counters the pitfalls of typical distributed voting and proposal methods. Through our adjustable Fixed Governance Philosophy and LP+ entity we have attempted to address the problems with more basic governance protocols.

At the core of YGY governance is the idea of a weighted strength index. Votes staked within the system are assigned by a user to selected weighting pools that determine the strength of a bias acting upon variables under the hood of the YGY system.

In order to vote, a user submits their YGY into one (or a mix) of several predefined voting pools. While their tokens are locked up within the voting system they will modify the weighting for a variable represented by the pool. The weight of the vote will remain present so long as the YGY tokens are staked within the Governance platform. However, the strength of votes is not only measured by the amount of tokens in a pool… but also by other factors such as amount of time within the voting pool or the total pool size. Even the weighting mechanic it self can be altered by votes.

If users decide not to vote upon a specific parameter then it will default to the initial conditions programmed into the system. This allows variable adjustment by the users to allocate the system resources to their preferred parameters without significantly altering the core structure of the platform. This also provides an innovative game theory inspired approach to competition within the voting mechanics. This may be YGY’s greatest innovation yet.

LP+ & Regenerator

The second innovation tying into governance which YGY provides is in our LP+ smart contracts. Using our game theory approach to liquidity markets we have constructed a fresh take on liquidity pools. Normally a Liquidity Pool platform’s health is wholly dependent upon outside agents to stake within it’s pool. This creates the conditions where supportive agents may choose to drop their support for the pool at any time for arbitrary reasons. YGY asks instead, “what would happen if there was a wallet controlled by a smart contract which was programmed to be a participant in the system in regards to staking, voting and DEX liquidity pools, yet uses all of its resources to continue to support the YGY system and can never cash out? 

Thus, as yield is generated within YGY this agent obtains it’s fair share of those yields and re allocates them into either the open market via DEX liquidity pools, the available platform side collateral pools, staked within a vote scheme, or for rebuying YGY on the open market. 

The agent which purchases YGY on the market serves as the rebuying platform within the LP+ smart contracts which we call the Regenerator. This ensures that there is always buy side pressure for YGY tokens created from the returns of the system. After regenerating YGY a portion is burnt and the remainder is reallocated to the system. YGY tokens held by the LP+ can also be used as a source of reward tokens for platform users.