yEarn Launches Delegated yDAO Funding Vaults DeFi Rate

yEarn – the leading DeFi yield-aggregator – has announced an addition to their delegated vaults called the yDAO Funding Vault.

Delegated Funding DAO Vaults a new decentralized funding mechanism

— (@iearnfinance) August 29, 2020


yDAO Funding Vaults enable YFI token holders to delegate pooled credit lines to anyone looking to bring additional value into the yEarn ecosystem. The yDAO vault can fund anything from smart contract audits to front-end design updates, or even viral meme campaigns to raise YFI awareness, as long as yDAO stakeholders approve of it.

Operationally, the Vault will be funded by YFI holders. Applicants looking for funding will need to set up a Gitcoin Grants page and make an official proposal in the yEarn forums. If approved, yDAO governance can set a credit limit that the applicant can draw from. This is made possible by the recent addition of YFI as accepted collateral on Aave and their Credit Delegation rollout.

Why does it matter?

The yDAO Funding Vault is a trusted on-chain resource for anyone to request funding for important yEarn ecosystem tasks. This is a big deal for three reasons.

  1. Accessible decentralized funding will add fuel to yEarn’s momentum and attract even more talented contributors to the already vibrant community.
  2. It provides a formalized process for the yEarn community to fund projects crucial to the protocol’s success.
  3. Funding selection is at the discretion of yDAO contributors, giving yDAO the flexibility to evolve into a DeFi-native crowdsourced venture fund.

You can find official announcements with more detail regarding yDAO on the YFI governance forums here.

Initially, yDAO is meant to fund value generative development within the yEarn ecosystem. Still, based on the community sentiment thus far, it’s not hard to imagine a future where yDAO becomes a generalized DeFi incubator. Some in the YFI community have already dubbed yDAO  the “YFI Combinator”.

Yes yes yes yes yes 🎉🎉🎉

YFICOMBINATOR @boredGenius understands.

— Blue Kirby ($YFI) (@learn2yearn) August 30, 2020

Imagine YAMs without the fatal bug that led to its initial failure or a SushiSwap that launched without FUD around the security of its smart contracts. This can now become a reality thanks to yDAO Funding Vaults and other community-driven initiatives like Fair Launch Capital.

Future DeFi entrepreneurs can acquire seed funding directly through the Yearn community and circumvent centralized finance entirely. Anonymous devs like Chef Nomi can acquire funds for code audits prior to launch and create a healthier farming environment for all participants.

Community-driven funding initiatives like yDAO and Fair Launch Capital will likely be a cornerstone of innovation in the ongoing DeFi bull market. 

To stay up with yEarn, follow them on Twitter or join the conversation on the governance forum.

The post yEarn Launches Delegated yDAO Funding Vaults appeared first on DeFi Rate.

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