Proposal 49: Manually balance YLA allocation


Manually set the allocation of YLA to provide reasonable diversification.


Currently YLA is balanced according to the TVL of the underlying Yearn vaults. This has resulted in 98% of YLA being allocated to a single asset (USDN), which does not deliver on the promise of the YLA pool to provide diversification across multiple Yearn vaults.

Until such time as a better automated strategy can be developed and deployed, manually set the YLA allocation to 25% in each of the current four underlying Yearn vaults.


The current allocation strategy is not providing sufficient diversification. A manual allocation will provide better diversification than the current strategy.


Manually specify token weights to provide an equal (25%) allocation to each token.

It is my understanding the promise of YLA is the maximize the yield via rebalancing every 5 days. USDN generating a better yield. I do not support rebalancing for the purposes of diversification at the expense of the highest yield arrangement on stable coins. YLA is one of the best in DEFI on stablecoin passive investment.

A lot of work has been going on to expand the strategies for YLA and provide more options for trading off diversification and yield. No two investors will manage this trade-off the same. DAO Treasuries tend to be more demanding on diversification, whereas (some) individuals favour yield at all costs. Soon you will see two flavours of YLA, allowing investors, both individual and DAOs, to choose which flavour most closely matches their individual risk profile/preference.

BTW: the proper channel for this type of discussion is the Discord YLA channel…nothing here is an actionable proposal to the DAO. Do not post personal preferences/opinions as Proposals, as if they are fully-specified and actionable by the DAO via vote. These are not.