Summary

1. Transform all Fusion vaults used for asset management to open permissionless vaults.
2. Add stETH and weETH asset management with Fusion vaults on Ethereum Mainnet.
3. Empower the Economics Workgroup to negotiate incentive deals with early atomists.

Theme

Currently, only whitelisted addresses can deposit into the Fusion vaults, which are used for asset management of the AMM pools. Now that the vaults have been running smoothly for several weeks and generating above-average returns, it is time to remove the whitelist and give every DeFi user the opportunity to enjoy an automatically optimized lending position.

After the asset management of the stablecoin pools was already upgraded to a Fusion vault, the quants of the IPOR Labs team have developed another strategy that includes leveraged looping of LSTs/LRTs. Corresponding Fusion vaults are currently in a test phase (first on Base, then Arbitrum, then Ethereum). If this is successfully completed, they will be used for the asset management of the stETH and weETH pools on Ethereum Mainnet. A whitelist will not be implemented, so these vaults will also be public. The use of Fusion vaults for the wstETH pools on Arbitrum and Base was already decided with IIP-28 and IIP-29.

As already stated in IIP-28, intensive preparations are currently underway with external partners who want to launch a Fusion vault as an Atomist. Some of these partners are now inquiring whether IPOR DAO will offer incentives to make the launch and associated marketing easier for the Atomists. Should individual Atomists make a specific request, the Economics Workgroup is hereby authorized to conduct appropriate negotiations. The length of such incentive deals is, however, limited to the duration of the Points Program (see IIP-28). In addition, the deal may stipulate that Atomists receive no points (or, depending on the amount of the kickback, reduced points) under the Points Program for a Vault that is the subject to an incentive deal.

Pros/Cons

Pros:

• New user base
• -> More TVL
• Higher yield for IPOR AMM LPs
• Flexibility in attracting Atomists

Cons:

Development costs

• Maintenance and infrastructure costs
• Lower DAO fees from some fusion vaults for a limited time

KPIs

To evaluate the success of a launch on Base, the following should be taken into account:

• Fusion TVL
• stETH and weETH pool native APR and TVL
• Quantity and quality of cooperation with external atomists

Timeline/Steps

1. Discussion: Discussion in the open governance forum for 3 days.
2. Vote: After this period the proposal will be moved to #formal-governance and a Snapshot vote will be held.
3. Implementation: as soon as the workload of the contracted developers allows it.
4. Monitor and evaluate the changes: After the changes have been implemented, it will be important to monitor their impact on IPOR and the community. This will involve tracking the KPIs mentioned earlier.

Resources

Technical

• Development tools
• Testing and deployment infrastructure

Financial

• Development budget

Skills/Budget

Skills

• Solidity and smart contract development skills
• Familiarity with DeFi protocols and concepts such as lending and borrowing
• Experience with Ethereum and the IPOR protocol

Budget

• Development costs for implementing the updates
• Security auditing costs (if required)
• Ongoing maintenance and updates

Cost Estimation

The IPOR Labs team has already signaled that the costs considered for implementing these proposals fall within the software development scope and services rendered and paid for from the protocol’s initial funding.

Commitment

Transparency: The contracted developer will have a commitment to being transparent about the development and implementation of the proposal. This will include providing regular updates on the progress of the changes and sharing any relevant data or information with the community.

Community engagement: The contracted developer will actively engage with the IPOR community throughout the development and implementation of the proposal. This will include soliciting feedback from the community and incorporating their suggestions and concerns into the proposal.

Responsiveness: The contracted developer will be responsive to any questions or concerns raised by the IPOR community about the proposal. This will include providing timely and accurate responses to any inquiries from the community.

Accountability: The contracted developer will be accountable for the impact of the proposal on the IPOR Protocol and its community. This will include tracking the KPIs mentioned earlier and making any necessary adjustments based on the results.