Proposed Merger of primeETH into YieldNest ynLSD

Visit the YieldNest Governance forum for an easier-to-read version.

Summary

YieldNest aims to be the most community-centric LRT provider and is anticipating committing 60+% of its governance token, YND, to community incentives (e.g., airdrops, LP incentives, treasury, grants, etc.). YieldNest proposes a long-term partnership with Origin. As part of this partnership, the protocols would merge their respective LRT products, primeETH and ynLSD. primeETH users will be able to migrate their deposits to YieldNest’s ynLSD. YieldNest will allocate a significant amount of its upcoming governance token, YND, to the Origin community in multiple phases, rewarding both primeETH holders (retroactively and going forward) and OGN stakers (xOGN holders). Origin’s DeFi money legos (e.g., OETH) will become a backing asset of ynLSD, and the two core teams and communities will jointly promote each other’s products to grow their collective TVL.

Through this partnership, YieldNest aims to become the premier management and programmatic yield layer for restaked Origin Assets on Symbiotic, EigenLayer, and future restaking/DeFi protocols providing more utility to Origin assets throughout the DeFi landscape.

Background

The YieldNest team is working on new restaking primitives designed to provide users safe, secure, and easy restaking options across EigenLayer, Symbiotic, and upcoming restaking protocols. YieldNest wants to build the most community-centric LRT protocol. YieldNest anticipates that the total airdrop allocation will be 15% of the total supply of YND and aims to increase the amount allocated to airdrops contingent upon TVL increasing over time with a target of being one of the most generous airdrops to hit the market in the restaking vertical with community incentives anticipated to be over 60%.

The founding team has deep experience in DeFi and is backed by notable angels, including the founders of Curve (Michael Egorov), Convex (Winthorpe & C2TP), Frax (Sam Kazemian), Kyber (Loi Luu), Algorand (Steve Kokinos), Yearn, Moralis (Ivan on Tech), and others. YieldNest’s upcoming ynLSD and full product suite promise to be among the most innovative LRT protocols in the market. YieldNest is superior to existing LRT players due to its cutting-edge technology and risk-adjusted, opinionated deployment across isolated and curated AVS/Network baskets, resulting in higher yields.

The Origin team believes that restaking is a powerful new paradigm for securing new decentralized protocols while providing new yield options for users. OETH is one of the accepted LSTs on EigenLayer, and primeETH was launched as Origin’s foray into the LRT space. The core Origin team believes that primeETH and its users will benefit from a merger with YieldNest that can be used to supercharge TVL growth while providing additional incentives for OETH holders. Origin is committed to accruing value to OGN and does not have plans to launch a new token for primeETH. The core team believes focusing on OETH and its upcoming L2 derivatives as building blocks within restaking will be a more effective strategy and will accrue more protocol revenue for OGN stakers (xOGN holders).

The Origin team has spent significant time and energy to find a suitable partner with a clear vision in the ever-evolving restaking landscape, in which YieldNest has emerged as the most capable and technologically advanced. YieldNest aims to become the premier management and programmatic yield layer for restaked Origin assets on Symbiotic, EigenLayer, and future restaking/DeFi protocols, providing more utility to Origin assets throughout the DeFi landscape.

The Origin and YieldNest teams are aligned in wanting to work together and create new innovations in the restaking landscape while driving significant value to both OGN and YND.

This proposal is being written by the CEO and co-founder of YieldNest, Amadeo Brands, with support from the Origin executive team.

Migration Proposal and Incentives

In the upcoming weeks, primeETH users will be able to migrate their underlying ETH and LSTs (e.g., OETH) to ynLSD via the primestaked.com DApp. They can stay in the protocol and start earning YieldNest seeds. At migration and at TGE, users will be eligible for a sizable amount of YieldNest incentives. primeETH users who migrate to ynLSD will get additional incentives and rewards.

YieldNest’s ynLSD contracts will be audited by top-tier auditors ChainSecurity and yAudit.

Proposed Incentive Program

primeETH Holders

• Exclusive PrimeStaked YND Retroactive Airdrop

  • A snapshot will be taken for PrimeStaked XP at the time that the migration to YieldNest goes live. primeETH will receive an airdrop on their pro rata share of YND at TGE based on how much PrimeStaked XP they have accrued at the time of the snapshot.

• YND Airdrop Seasons (anticipated to be 15+% of the YND total supply)

  • Season 1 will commence at the time of migration, and users who migrate to ynLSD will be eligible to get their pro rata share of YND based on how much TVL they bring to the protocol. A minimum of 4% of YND total supply will be allocated to the Season 1 airdrop campaign.
  • primeETH users will accrue YieldNest Seeds (YieldNest’s points program) over time as long as they continue restaking with YieldNest.
  • YieldNest will increase the amount allocated to airdrops as TVL increases over time, with a target of being one of the most generous airdrops to hit the market in the restaking vertical, with community incentives anticipated to be over 60%.

• Exclusive primeETH Seeds Boost

  • Users who migrate to ynLSD will receive a 5% Seeds Boost (YieldNest points program) at the commencement of the next season, which starts when the migration from primeETH to ynETH is open.

• YieldNest Pioneer NFT

  • Users who migrate at least 5 OETH will get the exclusive YieldNest Pioneer NFT. This NFT provides a permanent 15% Seeds Boost and a fast-track into governance and opportunities to earn more rewards. Think of this as a whitelist NFT that will allow you to participate and earn more in the YieldNest ecosystem.

OGN Stakers (xOGN holders)

• YieldNest will allocate up to an additional 2.5% of YND total supply to xOGN holders, contingent on Origin and its community contributing TVL to YieldNest products. OGN stakers will be able to claim this YND allocation at TGE.

Voting Options

xOGN stakers will be able to vote for or against this proposal. If the proposal passes, the YieldNest and Origin teams will launch the migration contracts that will allow users to convert primeETH to ynLSD. This will enable primeETH users to claim their YND tokens, additional benefits, and rewards as identified in the proposal. The two teams will engage in a deep partnership to ensure that both projects succeed.

If the proposal is rejected, we will seek community feedback to understand the objections and make adjustments for the two teams to re-engage to discuss alternative ways to partner.

Users who have specific feedback should feel welcome to message the core teams in Discord.