## Decentralizing Yearn debt allocation: a PoC Using STARKs to decentralize operational adjustments --- ### The Problem Some protocols require recurring changes to parameters, which cannot be voted in as it's too slow of a process This usually leads to a centralisation point, where a multisig is deciding on these debt parameters --- ### The Problem @ Yearn For yearn, the parameter that requires frequent updates is the debt distribution between strategies in a vault (which is done in several vaults) --- ### The solution - Let anyone propose a solution - - - BUT: how do we avoid wrong solutions? --- ### The solution (2) - Let anyone propose a solution - require a proof of validity - - BUT: how do we ensure they used the right inputs? --- ### The solution (3) - Let anyone propose a solution - require a proof of validity - use inputs from an on-chain snapshot - BUT: how can we trust this system that it will return the optimal solution? --- ### The solution (4) - Let anyone propose a solution - require a proof of validity - use inputs from an on-chain snapshot - reward the current proposer :heavy_check_mark: :heavy_check_mark: :heavy_check_mark: --- ### How does it work? Structure: - Layer1 DebtAllocator contract - Cairo Program (mini-VM) --- ### How does it work? (2) - Setup: deploy + add the strategy instructions - Operate: - Save snapshot - Calculate solution - Generate Proof - Send solution + proof --- ### Next Steps/ Improvements - orquestrate snapshots - make it easier to operate -