QIP031: Add Yearn vault tokens as collateral for MAI

This proposal is to add Yearn vault tokens (yvTokens) as collateral for borrowing MAI.

Yearn vault tokens are received when users deposit tokens into Yearn’s vault strategies. For example, depositing WFTM on Yearn gives users yvWFTM as a receipt of deposit.

Tokens added would have to have underlying tokens that are already accepted as collateral. For example, if FTM is already accepted as collateral, then the protocol could add yvWFTM as collateral.

Adding yvTokens as collateral would allow users to borrow against their yvTokens at 0% interest, while still earning yield from Yearn strategies.

Motivation

• Introduce QiDao to a new audience
• Decrease protocol risk
• Increase TVL
• Increase protocol revenue

Quorum Standards

The option with the most votes will be adopted.

Options

• Add Yearn vault tokens
• Do not add Yearn vault tokens