Permissionless Yearn Vaults
Yearn’s Vault Factory is a new way for anyone to create and register yield-generating yVaults through one simple interface quickly. It automates the deployment processes, making it easier for users to access ready-made yield strategies that can be applied to specific DeFi protocols.
The factory allows users to deploy Yearn Vaults rapidly and set up risk-adjusted yield strategies with just a few clicks, plus the deployment process does not require any human involvement! We also refer to these vaults as “permissionless” or “automated” vaults.
- User Interface: https://yearn.finance/vaults/factory
- Ethereum Contract: 0x21b1FC8A52f179757bf555346130bF27c0C2A17A
- Documentation: https://docs.yearn.finance/getting-started/products/yvaults/vault-factory
How Does the Vault Factory Work?
To deploy a Yearn Vault for a token that doesn’t have one yet, go to the interface and select the token name. Once an asset is chosen and the transaction submitted, the Vault Factory contract will automatically deploy a Yearn Vault with a predefined set of yield strategies for that token type.
Here is an example of the factory UI:
Currently, only strategies for liquidity pool tokens from Curve are supported, but we will expand with more token types as the factory is updated. Permissionless vaults created for Curve LP tokens come with a set of strategies that are optimized to maximize and automatically compound the yield earned for depositors:
- StrategyCurveBoostedFactory uses Yearn’s veCRV balance (currently 51.4m)* to give users the maximum 2.5x boost on their CRV rewards.
- StrategyConvexFactory supplies any additional Curve LP tokens (beyond which would receive the maximum 2.5x boost via the Curve strategy) to Convex Finance to earn CRV rewards (boosted by Convex’s veCRV balance) and CVX rewards.
- StrategyConvexFraxFactory will only be added to the vault if the Curve LP token of the vault can be staked in Convex for Frax. This ConvexFrax strategy will be used instead of the standard Convex strategy to earn additional FXS rewards (on top of the standard CRV and CVX rewards).
The Yearn Vault manages rewards' harvesting, claiming, and compounding, so users can relax and watch as their newly created vault automatically maximizes their yields without taking further action.
Long Live DeFi
As Yearn gets more permissionless, we are also lowering our vault fees:
Before, Yearn charged:
- 2% management fee, yearly flat-rate charged from vault’s funds
- 20% performance fee, charged on every harvesting profit
Now, Yearn charges:
- 0% management fees
- 10% performance fees
The fees for each vault can be seen in the new yearn.finance website:
You can also see the total allocated for each strategy:
And like any other yVaults, you can also use yearn.watch and yearn.vision to monitor the vault's real-time metrics.
- Yearn Website: yearn.finance
- Yearn Twitter: twitter.com/iearnfinance
- Yearn Docs: docs.yearn.finance
