Yearn

Summary

✅ All code is open source

✅ Voting occurs on-chain

❌ Economics have been critically exploited & funds lost

❌ Critical logic can be modified without a vote

Who do you have to trust?

The anonymous signers on the Ops multisig are capable of modifying Yearn strategies.

Governance Details

Andre Cronje’s Yearn project is still one of the most buzzed about DeFi endeavors with a highly enthusiastic community.

However, as of today, while it does offer on-chain voting, it also still operates under a supremely powerful admin key. It’s documentation is a bit misleading, though.

On July 28, 2020, this info was released:

According to this, yearn/YFI’s 6-of-9 multisig, comprised of a mix of known & anonymous keyholders, only has the limited function of setting “minters”.

However, on August 24, 2020, this proposal was passed: Source: https://yips.yearn.finance/YIPS/yip-41__

So, it appears that the multisig can “temporarily” do much more than just set minters. Notice that line in there about “Continue executing yVault strategy changes…”? It’s vague and subtle powers like this that gives an admin key far more power than it would appear to have at face value.

It’s safe to assume that the yearn multisig admin key is extremely powerful, at least until its “temporary” powers are removed. Once those temporary powers are removed (or further refined), it will likely move significantly up this list. It’s concerning when it’s so difficult to find accurate information on such an important topic.

Key links: