A combination of recent governance proposals and yVault discussions on Crypto Twitter imply that Yearn Finance may launch new V2 vaults in the near future.
A developer presented a diagram of how a vault collaboration between Yearn, Curve, and 1Inch would work. Shortly after, the official Yearn Finance Twitter account responded by stating that it would soon reveal more details.
On November 29, a DeFi developer working for Stake Capital shared a diagram depicting how a future V2 yVault would work. The diagram provided an overview of how multiple protocols within the sector interact together.
The intricate design showcases the movement of funds after a user would make a deposit into the yVault. The developer explains that GnosisSafeProxy functions as the governance entity and manages the vault.
On the other hand, a controller enables the vault to call deposits and withdrawals. Continuing, the controller interacts with both governance and a strategist, which is Keep3r in this case.
Uniquely, all entities further on communicate with the Yearn Strategy which is executed through a Strategy Proxy. After execution, the CurveYCRVVoter handles the call and transfers the funds into either a Gauge or a Voting Escrow.
After attracting attention from the community, the Yearn Finance Twitter account responded by saying that the team is ‘just getting started.’ Moreover, they have promised to share more details and diagrams regarding V2 yVaults in the near future.
V2 yVault fee structure already approved by governance
While the exact details of how V2 vaults work, we have a glimpse at their fee structure.
On November 7, a group of developers which include Banteg, Lehnberg, Milkyklim, and Tracheopteryx, published the YIP-51 governance proposal. Called ‘Set Vault V2 Fee Structure,’ the proposal introduces an innovative configuration for every V2 yVault.
The authors thought of having no withdrawal fees, setting a 2% management fee, as well as a 20% performance fee. Compared to the earlier V1 vaults, the new system would collect roughly the same level of fees as before. Moreover, it would not affect YFI staking rewards or strategist rewards.
Indicating that the previous fee systems lead to unpredictable situations and unstable vaults, the authors offered the community to vote for a better solution.
After introducing the governance proposals, the community had three days to cast their vote. The governance proposal has successfully passed after reaching a 99.74% approval rate on November 10.
With the previous information in mind, we can conclude that V2 yVaults are closer than ever. With developers coming public with their designs and the recent governance proposal, we see that the protocol may soon have a complete overhaul.
If announced and introduced for voting in the coming weeks, it is possible for Yearn Finance to launch the new vaults before the end of the year.
As Defiye previously reported, the Yearn Finance team ramped up their productivity last week. In the span of a few days, the team announced and featured three mergers.
By working together with Pickle Finance, Cream Finance, and Cover, Yearn will be able to leverage the expertise of other developers. This leads to a more symbiotic relationship between the major DeFi protocols, which used to compete so far.