Unveiling the Yeti Finance Advisory Committee
A proposed initiative designed to drive the Yeti Finance protocol toward greater success and decentralization through transforming token utility and growing community involvement.
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Today we are unveiling one of our new ideas the Yeti Finance Advisory Committee.
The purpose of this blog post is to outline what the Yeti Finance Advisory Committee could be and get feedback from the Yeti Finance community.
Background
Crypto protocols have long dealt with two major problems:
- Building meaningful token utility while not violating securities’ law
- Successful decentralization through DAO governance
The Yeti Finance Advisory Committee is an idea developed in partnership with our legal team to solves both these problems.
Executive Summary
The Yeti Finance Advisory Committee would be a committee that proposes, reviews, and advises on key protocol decisions with the goal of creating long-term, sustainable success for the Yeti Finance protocol.
Token holders could gain membership and participate in the Yeti Finance Advisory Committee by staking YETI. By joining the committee, token holders can shape the direction of Yeti Finance, have a stake in its success, and be compensated for their participation.
The idea of governance tokens hold weight when those participating in governance can claim a rightful share of the protocol’s success.
On a weekly basis, Yeti Advisory Committee participants will have the opportunity to vote and make their voices heard on important protocol decisions. In return, they are compensated in YUSD from protocol revenue and the treasury.
Voting power and compensation will be based on your accumulated veYETI. This will align incentives with larger and longer term $YETI stakers/holders receiving more voting power and rewards. Weekly compensation will be paid only to those committee members that vote that week.
Total committee compensation can increase as protocol revenues increase and may decrease if revenues go down. This will align compensation to the quality of the committee’s decision making.
The advisory committee will be able to weigh in on decisions about new collaterals to add, potential protocol partnerships, and $YETI token emissions.
YFAC would ideally help Yeti Finance decentralize and prosper through involving the community in key protocol decisions, while rewarding those who do so.
Technical Details
Proposals will be posted in a new Yeti Finance Governance Forum, where we will also encourage general discussion of Yeti Finance and the ecosystem.
The voting process will be handled through Snapshot.org. The Yeti Finance Team will be responsible for adding weekly proposals to Snapshot. Community members can also create their own proposals on the forum which the Yeti team can choose to add on Snapshot.org for an advisory committee vote.
There is a two week unstaking period to unstake your YETI to leave the advisory committee. For members of the committee who have staked toward the committee to earn YUSD but fail to vote for four weeks in a row, there is a 5% slashing of staked YETI tokens.
Voting is completely free outside of paying gas fees.
Next Steps
We would love to gather community input and feedback on the details discussed in this blog post.
We thank you for reading this far and ask you to share your thoughts and feedback on the Yeti Finance Discord. We look forward to discussing!
About Yeti Finance
Yeti Finance is a next-gen borrowing protocol built on Avalanche. This innovative protocol enables users to borrow against their entire portfolio of crypto assets, while continuing to earn the rewards that their deposited assets generated.
Unlock deep liquidity, borrow at the lowest collateral ratios, and borrow against your entire portfolio to gain better protection against liquidations.
