[READY] [GF: Phase 1 Proposal] Yearn

The defi shadow committee which is not an official committeerecommends voting against this proposal. There are some limited but high-level changes we’d liked to have seen, but we affirm that in principle we want to do as much as is reasonable to support Yearn’s onboarding onto Optimism.

Recommendation

We view Yearn as a key DeFi building block that Optimism would greatly benefit from. However, 1M OP over 40 weeks seems excessive, and we believe reducing the duration and size of this proposal to 500k OP over 20 weeks is more appropriate. This should be sufficient time for Yearn to show some positive traction and integrations, and the opportunity would be there to present a second proposal for another wave of incentives.

Yearn has a stellar reputation in the Ethereum community as one of the original DeFi projects. Optimism stands to gain tremendously by helping Yearn grow a foothold here—not just from the TVL their vaults will bring but from the integrations that Yearn enables with other protocols. Other projects are likely to follow Yearn here to build on top of them. There is a great multiplier effect reaped from their mere involvement, which is not something we can say for every project.