Proposal to Approve Monthly Resets to Rewards Multipliers for YDVs

Abstract This proposal recommends ongoing, monthly resets to the multipliers on each Yield Delegating Vault (YDV) to take into account $RLY price changes and support the continued long-term growth of the community treasury.

Details YDVs wrap deposits into underlying Yearn vaults. As these deposits earn via Yearn strategies, accumulated earnings are transferred to the community treasury and an amount of $RLY proportional to this transfer is made available as a reward for depositors. The amount of $RLY made available is a multiple of the tokens transferred to the treasury configurable on each YDV. The multiple is expressed relative to the tokens transferred to the treasury (i.e. the $USDC vault transfers $yUSDC to the treasury and the multiple expresses how many $RLY should be emitted for each $yUSDC transferred). Since each token type transferred by each YDV to the treasury has a different value, this multiple is different for each YDV and is intended to be relative to the value of the token that YDV supports.

The multiples described above were initially set with the intention of doubling the APY of underlying Yearn vaults. Multiples have not been changed since initial launch configuration, and price changes to $RLY mean these vaults are currently offering ~200% APY.

In the best interests of the long term sustainability of the total 500MM $RLY allocated for distribution via YDVs, monthly adjustments to the multiples, to be set within the range of 1.5X to 3X, will both continue to motivate deposits as well as enable community treasury building at a rate appropriately relative to $RLY emitted through YDVs.

Link For further information and to review a deeper discussion on this topic, please see the discussion on Discourse: https://forum.rally.io/t/rewards-evolution/249.

Proposal Implement an ongoing, monthly reset of the multiplier on each YDV to take into account $RLY price change with a target of 1.5X to 3X return on underlying Yearn vaults. The 30 day trailing average price of $RLY will be used as the basis for resetting the multiplier.

A YES Vote means that the multiplier on each YDV will be updated monthly to range between 1.5X to 3X returns of underlying Yearn vaults.

A NO Vote will result in no change to the current YDV multipliers.