The New Yearn CRV Vault (veCRV aka the Backscratcher)

Yearn has a new Vault out but it’s quite a bit different than the vaults that came before. Depositing CRV tokens into this vault is a one-way ticket. Expect to never be able to withdraw the CRV tokens that you deposit. You can swap yveCRV tokens back into ETH or stables via Uniswap, however. But on the up-side, you’ll get a very generous yield, presently at around 44%, although we anticipate that going down somewhat.

While the payment is in 3pool tokens, which is basically yearn’s stablecoin, the long-term value of yveCRV tokens will greatly impact the true ROI on the product. If you happen to have some CRV tokens already, especially for those early liquidity providers who have CRV tokens vesting over time, this can be a great way to put them to work.

In our test, the first transaction to approve the DAO (the ‘zap approve’ button) costs around $0.50 and then the 2nd transaction to actually deposit 160 CRV tokens was around $5.

This is a major innovation in the DeFi space and a clear sign that yearn has much more to offer.

Of interest for many, this vault was built by Andre Cronje and the UI was built by Banteg.

If you’d like to donate ETH/ERC-20, it’s appreciated! Haines.eth

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