Yearn State of the Vaults #4

Week ending October 18, 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 Yearn’s yVaults.

• 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.
• 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 🏦

ycrv3pool

Launched this past week, this vault accepts 3pool LP tokens and stakes them on Curve.fi to farm CRV. This yVault performed its first harvest() on October 15th. Harvests are currently managed by a bot, and can be called every 24 hours and if it is profitable for the bot to call the transaction (strategist fee exceeds gas cost).

yUSD/ycrvBUSD/ycrvsBTC/ycrv3pool

Curve boost levels as of October 16th:

Boosts are based on Curve gauge weights as well as how much veCRV the Yearn strategies have locked. Furthermore, an update to the UI is coming soon that will be able to display current boost levels for each vault. This data is currently accessible in the contracts.

yDAI/yETH/ywBTC

Banteg revealed earlier this week that the optimization of the yETH/ywBTC vaults are complete, but are in need of a new strategy for the yDAI Vault which the yETH/ywBTC strategy is reliant upon. To this end, we are soliciting ideas from the community, and the team is working to develop potential strategies as well. Mulitple strategies have already been proposed on the governance forums (here and here) for COMP farming with DAI, which would avoid DAI liquidity crunches on Curve. However, there also appears to be the potential for COMP vesting in the future, which may impact any such strategies.

yYFI

This past week, a signaling vote on MakerDAO to add YFI as a collateral option passed with 99.97% Yes. As the final step to collateral onboarding, YFI will be included in a future executive vote within 30 days of this poll passing.

yGUSD

Teased here, details will be released on this upcoming yVault as they are available.

Current Vault Strategies 📝 and Weekly APYs💰

ycrv3pool

StrategyCurve3CrvVoterProxy. Deposits 3pool LP token into the 3pool liquidity gauge at Curve.fi and farms CRV. A portion of this CRV is redeposited back into the gauge (to boost returns) and the remainder is sold for DAI, deposited back into the 3pool at Curve to obtain crv3pool and deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 17.00%

yETH

StrategyMKRVaultDAIDelegate. Deposits ETH into a Maker CDP to mint DAI. This minted DAI is deposited into the yDAI vault 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 yETH vault. The current yETH strategy targets a collateralization ratio of 200% for the CDP 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 CDP 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: 0.47%

yYFI

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

Current APY: 10.78%

yUSD

StrategyCurveYVoterProxy. Deposits yCRV into the y Pool liquidity gauge at Curve.fi and farms CRV. A portion of this CRV is redeposited back into the gauge (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: 3.91%

ycrvBUSD

StrategyCurveBUSDVoterProxy. Almost identical process as the yUSD vault listed above, except it deposits crvBUSD (base asset of the yVault) back into the yVault instead of yCRV. Curve boost is currently enabled for this strategy.

Current APY: 16.44%

ycrvsBTC

StrategyCurveBTCVoterProxy. Deposits crvsBTC (Curve.fi sBTC pool LP token) into the sBTC liquidity gauge at Curve and farms CRV. A portion of this CRV is sold for WBTC, redeposited into the crvsBTC pool at Curve and the remainder is deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 2.92%

yDAI

StrategyDAICurve. Deposits DAI into the y Pool at Curve.fi and farms CRV. A portion of this CRV is sold for DAI, redeposited into the y Pool and the remainder is deposited back into the yVault.

Current APY: 6.03%

yTUSD

StrategyTUSDCurve. Operates the same as the yDAI vault, except deposits TUSD instead of DAI into the y Pool at Curve.fi.

Current APY: 5.74%

yUSDC

StrategyDForceUSDC. Deposits USDC into dForce.network and farms dForce Token, which is sold for USDC and redeposited back into the yVault.

Current APY: 5.03%

yUSDT

StrategyDForceUSDT. Deposits USDT into dForce.network and farms dForce Token, which is sold for USDT and redeposited back into the yVault.

Current APY: 5.03%

yaLINK

StrategyVaultUSDC. Uses aLINK as collateral to borrow USDC from Aave. The USDC is deposited into the yUSDC vault 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: 24.9%

yLINK

Deposits for this vault are currently disabled– please deposit LINK to Aave first and use yaLINK vault 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 and TVL several ways: Yearn stats, stats.finance, feel-the-yearn, yearn.party, yVault-ROI