[BIP-213] Whitelist Yearn’s yBAL Voter Contract for veBAL

Abstract

This proposal aims to receive community support for whitelisting Yearn's yBAL locker/voter contract on Ethereum, to lock B-80BAL-20WETH for veBAL.

Motivation

Yearn is building yBAL, a new veBAL liquid wrapper (based on our successful yCRV product) designed to tokenize the different benefits of Yearn’s veBAL position. This system will be comprised of a base token (yBAL) as well as three “activated” yBAL tokens.

yBAL can be minted by locking B-80BAL-20WETH into Yearn’s veBAL position (a permanent one-way “forever” lock). This operation mints yBAL to the user at a 1:1 rate. yBAL carries no yield itself but allows users to enter or exit the yBAL ecosystem. It will be soft-pegged to B-80BAL-20WETH via a Balancer pool.

Yearn passes the benefits from its veBAL position to the three activated yBAL tokens:

1. st-yBAL (staking rewards):

• st-yBAL will be a yVault that holds yBAL and receives yield from…
• 100% of the admin fees from Yearn’s total veBAL position
• Gauge voting bribes (any yBAL inside st-yBAL earns yield by voting for gauges with bribes).
• All profit will be swapped for more yBAL which will be deposited back into the strategy.

2. lp-yBAL (liquidity pool rewards):

• lp-yBAL will be a yVault for the B-80BAL-20WETH/yBAL Balancer pool.
• It will earn yield by auto-compounding BAL emissions and trading fees into more B-80BAL-20WETH/yBAL BPTs.

3. vl-yBAL (gauge voting power):

• vl-yBAL will be a contract that accepts yBAL and offers holders liquid on-chain veBAL gauge weight voting.
• Broader Balancer DAO/gov votes will not be extended to vl-yBAL holders.
• vl-yBAL holders receive no yield, only 100% of their respective veBAL gauge voting power.

Users can choose to move between activated tokens at any time depending on which benefits they want, except for vl-yBAL which will have time lock restrictions varying from 14 to 28 days.

Technical implementation:

Yearn's yBAL locker/voter has now been deployed...

• 0xBA11E7024cbEB1dd2B401C70A83E0d964144686C

We propose adding it to the allowlisted addresses in the SmartWalletChecker (0x7869296Efd0a76872fEE62A058C8fBca5c1c826C) so that we can launch the yBAL ecosystem and begin locking B-80BAL-20WETH for veBAL.