Yearn State of the Vaults #11

Week ending December 6, 2020

dudesahn

Published in

Yearn State of the Vaults

6 min readDec 5, 2020

Overview

To help consolidate information in a single place, we created State of the Vaults–a weekly update that will include yVault-related updates from the previous week as well as more in-depth information about the actions (strategies) these vaults are performing.

If you’re looking for a guide on using the yVaults, check out some of our fantastic docs–including how to use a yVault and how to mint yUSD.
If you’re looking for current ROIs (annualized returns) on the yVaults, you can view the official stats here–with many more ways to visualize this data available in the links at the bottom of this page.
And if you’re interested in an overview of everything going on in the Yearn ecosystem, subscribe to Yearn’s weekly newsletter here.

Vault Updates 🏦

USDT and USDC yVaults

Both of these yVaults, which previously were farming dForce token, have been updated to instead deposit into the 3pool on Curve.fi, and then deposit the 3pool LP token into the 3pool yVault. The 3pool yVault has seen an annualized APY of 17.55% over the past month, which means that users in the USDT, USDC, and aLINK yVaults should now see improved yield.

Curve Pool yVaults

Curve boost levels as of December 4th (current/max):

Y Pool: 1.23/1.75
BUSD Pool: 1.35/1.94
sBTC Pool: 1.39/1.92
3pool: 1.48/2.09
Compound Pool: 2.50/2.50

Max boosts are determined in part by strategy holdings relative to total pool holdings while current boost is affected by how much veCRV Yearn has locked. Furthermore, an update to the yearn.finance UI is coming soon that will display current boost levels for each vault. This data is currently accessible in the contracts as well as from the API here.

You may also notice that APYs have been steadily increasing for these yVaults. Since the strategy for these yVaults consists of farming and selling CRV tokens, as CRV goes up in price, so does APY.

veCRV Backscratcher

Although the previous vote to release admin fees passed easily, one more vote is required to finalize the distribution of the 3pool LP token (aka 3crv) due to veCRV holders. According to Curve, the actual fee distribution will take place one week after this vote concludes.

v2 yVaults

v2 is closer than ever, and Yearn is planning to gradually phase in limited versions of these yVaults with the release of v0.2.2. These new v2 yVaults will integrate guest lists and capped strategies that will ramp up over time. v2 yVaults launching soon may include HEGIC, DAI, WETH, and WBTC, but this list is not final and is subject to change. Furthermore, Yearn’s strategists continue to test new yVaults, including zLOT and crETH 2.0.

Odds and Ends

Yearn Strategist vasa produced a comprehensive diagram providing an overview of Yearn’s v1 yVaults here.
MakerDAO recently held a signaling poll on whitelisting Yearn on the YFIUSD OSM here. The vote passed with 100% Yes, and will be added as a part of the next Maker Executive Vote. This helps make YFI strategies utilizing Maker safer, as it allows Yearn to see the next OSM (liquidation) price one hour in advance.
A signaling vote to create a YFI Governance Vault is currently live. YFI holders can vote to merge all governance staking to the Governance Vault, create it as an additional option, or vote against its creation completely. You can find the Snapshot vote here, and the original forum post here.

Yearn Holdings 💰

Total Value Locked

$546,166,734.58

Total Vault Holdings

$243,324,440.67

Total Strategy Holdings

$209,356,452.80

Current Vault Strategies 📝 and Weekly APYs 📈

Curve Compound yVault

StrategyCurveCompoundVoterProxy. Deposits Curve-Compound LP token into the liquidity gauge at Curve.fi and farms CRV. 10% of this CRV is locked as veCRV (to boost returns) and the remainder is sold for DAI, deposited back into the Compound pool at Curve to obtain Curve-Compound and this is deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 12.49%

Curve 3pool yVault

StrategyCurve3CrvVoterProxy. Deposits Curve-3pool LP token into the liquidity gauge at Curve.fi and farms CRV. 10% of this CRV is locked as veCRV (to boost returns) and the remainder is sold for DAI, deposited back into the 3pool at Curve to obtain Curve-3pool and this is deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 15.39%

Curve Y Pool yVault

StrategyCurveYVoterProxy. Deposits Curve-Y into the Y Pool liquidity gauge at Curve.fi and farms CRV. 10% of this CRV is locked as veCRV (to boost returns) and the remainder is sold for DAI, deposited back into the Y Pool at Curve to obtain Curve-Y and deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 9.89%

Curve BUSD Pool yVault

StrategyCurveBUSDVoterProxy. Almost identical process as the Curve Y Pool yVault listed above, except it deposits Curve-BUSD (base asset of the yVault) back into the yVault instead of Curve-Y. Curve boost is currently enabled for this strategy.

Current APY: 12.73%

Curve sBTC Pool yVault

StrategyCurveBTCVoterProxy. Deposits Curve-sBTC (Curve.fi sBTC pool LP token) into the sBTC liquidity gauge at Curve and farms CRV. 10% of this CRV is locked as veCRV (to boost returns) and the remainder is sold for WBTC, deposited into the sBTC pool at Curve and then this is deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 6.98%

YFI yVault

StrategyYFIGovernance. Deposits YFI into the Yearn governance staking contract, earns Curve-Y governance rewards, converts Curve-Y into USDT, buys additional YFI with the USDT, and deposits back into the yVault.

Current APY: 0.75%

DAI yVault

StrategyDAICurve. Deposits DAI into the Y Pool on Curve.fi and deposits the resultant Curve-Y into the Curve Y Pool yVault.

Current APY: 9.09%

TUSD yVault

StrategyTUSDypool. Deposits TUSD into the Y Pool on Curve.fi and deposits the resultant Curve-Y into the Curve Y Pool yVault.

Current APY: 13.13%

USDC yVault

StrategyUSDC3pool. Deposits USDC into the 3pool on Curve.fi, and deposits the 3pool LP token into the 3pool yVault.

Current APY: Currently negative due to slippage when switching strategies; true APY for this pool should be very close to that for the 3pool yVault.

USDT yVault

StrategyUSDT3pool. Deposits USDT into the 3pool on Curve.fi, and deposits the 3pool LP token into the 3pool yVault.

Current APY: Currently 0.81% due to slippage when switching strategies; true APY for this pool should be very close to that for the 3pool yVault.

ETH yVault

StrategyMKRVaultDAIDelegate. Deposits ETH into a Maker Vault to mint DAI. This minted DAI is deposited into the DAI yVault which deposits DAI into the Y Pool at Curve.fi and farms CRV. Profits from the CRV sales are used to purchase additional ETH, which goes back into the ETH yVault. The current strategy targets a collateralization ratio of 200% for the Maker Vault and periodically queries Maker’s Oracle Security Module (OSM). Therefore, the strategy is able to see the future oracle price 1 hour before price updates are made.

This yVault is currently undergoing an optimization process that will enable the Maker Vault to be shifted to new strategies without totally unwinding the debt, which will allow flexibility and deleveraging protection. The optimization process is estimated to take an additional 1 to 3 weeks. Unforeseen events may delay this update.

Current APY: 0.87%

aLINK yVault

StrategyVaultUSDC. Uses aLINK as collateral to borrow USDC from Aave. The USDC is deposited into the USDC yVault and farms based on that yVault’s current strategy (listed above). Excess profits are harvested and used to buy additional LINK, which is deposited into Aave for aLINK.

Current APY: 2.38%

GUSD yVault

StrategyCurveGUSDProxy. User deposits GUSD, which is deposited to GUSD/3pool Metapool on Curve.fi. The gusd3crv LP token is deposited into the liquidity gauge at Curve.fi and farms CRV. 10% of this CRV is locked as veCRV (to boost returns) and the remainder is sold for DAI, deposited back into the GUSD/3pool Metapool at Curve to obtain gusd3crv and deposited back into the yVault.

Current APY: No funds are currently in strategy due to slippage issues. You can read more about this issue in previous State of the Vaults here and here.

LINK yVault

Deposits for this vault are currently disabled– please deposit LINK to Aave first and use aLINK yVault instead.

**Current APY for all yVaults is based on the most recent 7-day period, annualized.

Useful Vault Links 🔗

yVaults Holdings/Deposited/Withdrawn– Dune Analytics
Recycler– zap multiple stablecoins into the yUSD Vault in one transaction
Estimate future yVault ROI
Calculate Governance and yVault APYs (and calculate current yUSD value)
View current ROI, TVL, and strategies several ways: Yearn stats, stats.finance, feel-the-yearn, yearn.party, yVault-ROI
Use the yearn.tools API to view APYs, contract info, as well as boost info for relevant yVaults