YIP-17: Protocol Revenue Fee

Summary

• Increase protocol revenue fee from 15% to 20%.
• Direct all revenue to the project temporarily for a period of 90 days, after which we can assess the need for this redirect.
• Target 50% revenue share, pending revenue surplus. Goal is to increase this share as the surplus grows.

The protocol revenue fee is applied to each yAxis Harvest, which claims all accrued rewards for a given vault and compounds them back into the underlying strategy. Protocol revenue can be used to fund operations as well as to fuel YAXIS buybacks on the open market (timed to favorable market conditions and for highest impact). This would support sustained tail emissions.

Following discussion in Discord and the Forum, this proposal seeks approval from the DAO to increase our revenue fee from 15% to 20% on both Ethereum and Avalanche. Additionally, we propose to temporarily direct all revenue to the project.

Given market conditions, it’s best to avoid selling YAXIS tokens to fund operations. The revenue-redirect would essentially reduce pressure on YAXIS. This is in the best interest of all YAXIS constituents.

The goal here is to grow revenue to net surplus, which can be distributed back to DAO members. The near-term target could be 50% revenue share, with an eye on increases as revenue surplus grows.

If approved, YIP-17 would:

• Increase Protocol Revenue Fee to 20% on Ethereum and Avalanche
• Temporarily send all revenue to the Treasury for 90 days

Voting is now open for 48 hours. Start: 27 Feb 2022, 1830 UTC End: 01 Mar 2022, 1830 UTC