Summary

This is a proposal to change the mechanism for harvesting a Concentrator Harvester Vault.

These changes would:

1. better protect harvest yields for users and
2. allow us to remove the withdrawal fees.

These changes are beneficial to current users as well as attractive to potential future users.

Motivation

Currently, Harvester Vaults are harvested using keepers. There is a 1% bounty for keepers to call the harvest function. Usually, when the amount of rewards is higher than the gas cost, a bot will trigger the harvest function. To prevent harvest abuses at the expense of depositors, there is a withdrawal fee. Without such a fee, a user could make a large deposit in an unharvested vault, trigger the harvest function, get the reward proportional to their deposit, and then leave the vault. This would be to the detriment of users who had their deposits in the vault the entire harvest cycle.

The withdrawal fee has worked well so far, but we have noticed a few cases where MEV bots have been able to take advantage of the harvest function. As well, we are aware that the withdrawal fees could discourage users from using Concentrator vaults, especially in lower yielding vaults such as the stablecoin vaults.

Proposal

Given these considerations, the Aladdin team proposes to change the harvesting mechanism so that only address that meet the following two criteria are allowed to harvest:

• The address must hold at least 2500 veCTR
• The ve holding period is at least 1 year from the harvest block

These criteria serve to restrict harvesting to users that are vested in the Concentrator and will discourage mercenary capital from abusing the harvest.

The team will also manage a Disallow List so that any addresses that have been caught harvesting at the expense of other users will be banned from harvesting.

With these changes in place, we would remove the withdrawal fee.

This Snapshot is for xALD holders. Be sure to vote on both Snapshots if you hold veCTR and xALD.

There is no quorum requirement for this proposal. Over 51% support is needed to pass the vote.