Youves Second Amendment Proposal: Gold Tracker And The Unification Of YOU Staking Pools

by | Dec 8, 2021 | Adoption, DeFi, Latest

The new Youves amendment proposal which is the second amendment proposal to date includes a gold tracker token (uXAU) and the unification of YOU staking pools.

Quick Intro To The Youves Platform

Decentralized Finance (DeFi) platform Youves allows users to deposit XTZ as collateral and take out a loan by minting assets. (Currently the stablecoin uUSD).

Users can also deposit uUSD in a savings account and earn interest. Once minted uUSD, the minter starts earning YOU tokens, the governance tokens of the Youves platform.

Holders of YOU tokens can stake them to earn a percentage of the platform’s revenue in uUSD.

Users can also use uUSD as collateral to mint uDEFI.

Read more about youves in our introduction article here

The Youves platform has been live for about 5 months, and currently 603 users have locked 5.4 million XTZ as collateral and minted 6.6 million uUSD.  

Proposal #2 • YIP-002

Changes to the platform are made through a governance process where holders of the platform’s governance token (YOU tokens) can submit their vote for or against a proposal. 

Two months ago the first amendment proposal was introduced and approved through the first ever Youves voting round. The proposal was approved and amongst a few other changes, a DeFi tracker token uDEFI was introduced. 

Now the second amendment proposal is announced: YIP-002. In the proposal several changes are proposed: 

Voting Mechanism

Changes to Youves are governed with a four out of seven multisig setup as stated on Youves’ landing page.

In order to allow token holders to vote, the same voting mechanism which was already used for YIP-001 is presented on the Youves governance page.

Supported by Beacon, users can vote with the weight of YOUs in their wallet, staking pool or YOUs on Quipuswap and Plenty.

Voting for YIP-002 is open until Monday, December 13, 2021, EOD UTC. The implementation of the amendment will take place until January 11, 2022.

YIP-002 consists of two amendment proposals (A – B). Users cast a single ‘yes’ or ‘no’ vote for both proposals combined. In case of a ‘no’, none of the proposed changes will be implemented.

A – uXAU Gold Tracker

The Youves community identified commodities as an attractive asset class and further concluded that gold shall be the first reference asset. We suggest implementing the gold tracker, uXAU, in a similar manner than uDEFI.

Its collateral shall be uUSD and minters shall have the ability to opt-in to receive YOU rewards and to participate in conversion offers. The interest response mechanism shall be identical to uDEFI.

It is suggested that the new asset should be tested on Granadanet prior to launching on mainnet.

“We propose the introduction of a new gold tracker token named “uXAU” that shall be implemented similar to uDEFI. uXAU shall be tested on Granadanet prior to launching on mainnet.”

B – Unifying YOU Staking Pools

The Youves platform currently collects fees for each synthetic asset and distributes those as staking reward to YOU holders. YOU holders currently have the choice between two staking pools, one for uUSD and one for uDEFI, that pay staking rewards in the related synthetic asset.

In order to avoid the creation of multiple staking pools for each existing and new tracker token, we suggest unifying YOU staking for tracker token in one pool.

The new YOU staking pool shall pay rewards in YOU that it purchases on the markets by swapping revenues from individual tracker tokens if markets allow.

In other situations, the pool shall continue to pay rewards in tracker token. It is again suggested to test the new asset on Granadanet prior to launching on mainnet.

We propose to unify the youves staking pools for tracker tokens into one YOU staking pool that shall cover all existing and future tracker tokens. The YOU tracker token pool shall pay out rewards in YOU if markets allow. Otherwise, it continues to pay rewards in tracker tokens. The changes shall be tested on Granadanet prior to launching on mainnet.

We individually propose the following amendments:

  1. There shall be a single YOU token staking pool on youves that pays rewards in YOU and in case of unfavourable markets also in tracker tokens, such as uUSD or uDEFI.
  2. Each tracker token shall have its profit share retained on a segregated address. The profit remains there until it is either traded for YOU tokens or distributed without trading.
  3. Four times a day, at 05:00, 11:00, 17:00 and 23:00 UTC a new trading window shall start. At the beginning of each trading window, the prices of each of the tracker tokens (i.e. uUSD) vs. YOU and also the prices vs. their soft peg (i.e. uUSD vs. USD) shall be observed and noted by the contract. Based on the information, the platform aims to swap the accumulated profit share amounts on each tracker token address ( uUSD, uDEFI and if this amendment is accepted also uXAU and any following tracker tokens) against YOU tokens on a market place. For each of the tracker token profit shares this will be done as long as the following two conditions are fulfilled cumulatively:
    1. The price of the specific tracker token does not decrease by more than 5% vs. the YOU token since the beginning of the respective trading window.
    2. The specific tracker token is no more than 2% below its soft peg.
  4. If the full amount on an address of a specific tracker token cannot be swapped without violating the above conditions, then only a fraction of the specific tracker token will be swapped up until the point where either of the conditions start to be breached.
  5. Any remaining tracker tokens that cannot be swapped will be retained on the address until the next trading window. Meanwhile, their theoretical allocation to staked YOU tokens is calculated.
  6. YOU tokens acquired by the contract are allocated to the staked YOU tokens.
  7. YOU token holders that decide to unstake their YOU holdings at any point in time will receive the following profit share:
    1. the acquired YOU tokens which were allocated to their YOU holdings.
    2. The remaining tracker tokens that so far could not be swapped and have a theoretical allocation to the unstaked YOU tokens.

More info can be found on the Youves governance page

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