Enable Delegation for Whitelisted Third-Party Integrations

The ratified yETH YIP doesn’t include st-yETH voting power delegation. Feedback from potential integrators indicates the need for such a feature.

Take a lending protocol using st-yETH as collateral, for instance. Without delegation, the protocol either monopolizes the voting power or forfeits it, leading to centralization risks or reduced influence, respectively.

Delegation allows lending protocols to distribute yETH voting power to their governance participants, boosting st-yETH adoption.

Specification

1. Delegation is off by default; enable via st-yETH governance vote for specific whitelisted contracts.
2. Whitelisted contracts can delegate st-yETH voting power to third parties.
3. Voting power is splittable; users can vote both for and against proposals, relaying their choices to yETH.
4. In delegation, a constant vote power ratio is set to all whitelisted entities for simplified accounting.
5. A new delegation_vote_power_ratio parameter is added, adjustable via st-yETH governance. Range: 0%-100%, default: 50%.

Roll-out

Deploy audited contracts as soon as practicable.