It might not be time yet to launch yETH, Yearn.finance’s proposed token which tracks a basket of ETH Liquid Staking Tokens (LSDs).
A poll on the Yearn.finance governance forum shows that members are pretty split about launching the token. The poll is non-binding and is meant to take a temperature check of the community’s interest in moving towards a binding vote via snapshot.
So far, 20 people have cast their vote, with 11 taking the no side.
Yearn.finance is positioning yETH, which holds a basket of LSDs as a way to hedge against the different protocols, which all have their varying smart contract and liquidity risks.
“yETH essentially spreads the risk across the various Ethereum LSDs while also earning additional yields through Yearn’s large veCRV position for Curve Pools,” pseudonymous crypto investor DeFi Maestro told CoinDesk earlier in a Twitter message.
In the thread discussing the proposals, some users questioned the need for exposure to multiple LSDs as after the Shanghai upgrade, the risk of de-pegging is low.
“I would much rather see this work like yCRV where you can either stake st-yETH for validator yield, or provide yETH-ETH LP in Curve and receive LP-yETH receipts which earn emissions from treasury directing some its CVX/CRV war chest there for a yield alternative,” one user by the handle MrStiive said.
Others have said that yETH’s proposal is too similar to existing projects like unshETH which has already launched.
“Why do Yearn contributors feel the need to copy their ideas from other projects? As previous replies have pointed out, even part of the proposal itself is copied,” a user named Hardwood said. “DeFi is not governed by copyright; in truth, plagiarism might even be one of the greatest forms of flattery – but in this case, it only exacerbates the sorun that the proposal is trying to solve. Even in the most bullish case, we would end up fragmenting LSD asset liquidity with another copycat idea.”
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The poll is set to continue for another three days.