Summary

ZeBrains has proposed that we adopt a framework to categorize current and future vaults into one of three categories. This framework should help to better organize our vaults and help with future adoption.

Details

In out current system we have an emission that currently adds incentives to users of our first three vaults for one month. These vaults currently use 100% of the profits to put into our platform via buy and burn and the AMP. Some users may feel that this is a bit jarring as they are used to returns outside of farming. This becomes increasingly a problem when the emission ends and this incentive is not longer around. If we intend to keep users after emission, we need to make sure there are some additional incentives to keep users on the platform.

What I propose is that we organize our vaults into 3 different categories that each have their own usage and marketing goal to bring in and sustain users.

Additionally, I propose that we keep with the gaming theme by using the terms Easy/Normal/Hard Mode for each of the types of vaults. Below is the framework that I think can help us prosper as we grow as a community.

Below I detail out how we intend on breaking these vaults out in the framework as well as how the tokenomics would work for each.

Hard Mode Vaults

All of the current 3 vaults (DAI/USDT/USDC) would be categorized as "Hard Mode" vaults. These vaults currently are incentivized by the emission of yfBeta. When the first month ends, these vaults will not provide many users immediate profits to keep them in these vaults. This is why we should implement the next two vaults. This pool is where we should expect the "All-in" users to reside.

Details

• These vaults are generally low risk - low yield.
• Vaults will be subsidized with yfBeta emission for 1 month.
• Profits from these vaults are split between the following 3 areas: 47.5% to the AMP. 47.5% to Buy and Burn. 5% for Gas and Deployment Fees
• The current 3 stable coin vaults are all a part of this category.

Normal Mode Vaults

These vaults solve the problem of "What will users do when emission ends?". We should assign any high-risk and high APY strategies to this category to appeal to the majority of our users. Because these vaults still provide much of the daily profits back to the user, this should be significant enough incentive to keep these users on the platform even after the emission ends. This pool is where we would hope many of the users to remain.

Details

• These vaults use a higher-risk higher-reward strategy.
• Profits from these vaults are split between the AMP and User. 47.5% profit back to the user. 47.5% profit to the AMP. 5% to Gas and Deployment Fees
• These vaults will likely have an emission schedule but will cause far less inflation than Hard Mode vaults. (1.5k over 1 month instead of 3k)

Easy Mode Vaults

These vaults would hope bring in new or undecided users. By allowing users an option that provides a significant amount of profits to the users, it allows users to test out the platform. The hope is that these users enjoy the platform but see the APY numbers available on the "Normal" vaults and convert over. If they migrate, they will end up providing much more to the platform and AMP. This is very similar to how yEarn has both "Earn" and "Vault" pools.

Details

• Risk/Reward will vary from vault to vault of this type.
• These vaults will return nearly all profit to the user following the below model 1-3% to the AMP 91-94% to the User ** 5% for Gas and Deployment Fees
• This would bring in new users. The hope is that after seeing the returns, users would convert to the "Normal" mode vaults and provide more to the AMP while also earn more in profits.

TL;DR

A vote for Yes* means:

• We will update the front end to show vaults in 3 "difficulties" Easy/Normal/Hard/
• All new vaults will be chosen and a "difficulty" will be assigned based on the community's decision.
• These categories will work alongside any and all other proposals.

A vote for No** means:

• We will leave vaults and their tokenomics as they are. Sorry if the formatting is not great. I can take a picture