Yearn State of the Vaults #12

Week ending December 13, 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 🏦

Curve Pool yVaults

Curve boost levels as of December 11th (current/max):

• Y Pool: 1.21/1.69
• BUSD Pool: 1.32/1.90
• sBTC Pool: 1.44/1.98
• 3pool: 1.48/2.10
• 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.

veCRV Backscratcher

Curve.fi’s admin fees were released this week, and depositors in Yearn’s veCRV Backscratcher have claim to these fees (in 3pool LP) as incentive for depositing CRV. To claim these fees, head to crv.ape.tax.

v2 yVaults

Development on Yearn’s v2 yVaults continues, with new vaults, strategies, and features being tested every day. This week, v2 DAI, SushiSwap YFI-ETH, USDC, and DEV yVaults all called their first harvest. Furthermore, DAI and USDC have added options for no-approval deposits via the permit function, the v2 zLOT and HEGIC vaults will work together synergistically, and a strategy for USDC utilizing Idle Finance is under testing. If you’re interested in following code review for v2 strategies, you can find that here, and if you’re interesting in contributing yourself, start here.

Odds and Ends

• Yearn Strategist vasa produced a comprehensive diagram providing an overview of Yearn’s v2 yVaults here, and also produced a simplified version here.
• MakerDAO’s current executive vote includes whitelisting Yearn on the YFIUSD OSM Oracle and adjusting the YFI-A vault parameters to 30 million DAI debt ceiling and a 10% stability fee.
• The DILL token, which functions similarly to Curve’s veCRV and will tie-in PICKLE staking for additional yield on Yearn’s yVaults, is currently under audit.
• Yearn’s second audit of the v2 yVault code is in progress.

Yearn Holdings 💰

Total Value Locked

$472,106,897.20

Total Vault Holdings

$223,446,020.08

Total Strategy Holdings

$193,131,520.00

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: 12.89%

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: 14.25%

Curve Y Pool yVault

StrategyCurveYVoterProxy. Deposits yCRV 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 yCRV and deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 9.30%

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 yCRV. Curve boost is currently enabled for this strategy.

Current APY: 12.92%

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: 4.89%

YFI yVault

StrategyYFIGovernance. Deposits YFI into the Yearn governance staking contract, earns governance rewards in the form of yCRV, converts yCRV into USDT, buys additional YFI with the USDT, and deposits back into the yVault.

Current APY: 0.79%

DAI yVault

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

Current APY: 9.10%

TUSD yVault

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

Current APY: 13.54%

USDC yVault

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

Current APY: 9.68%

USDT yVault

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

Current APY: 12.76%

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: 0.82%

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: 0.54%

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