Yearn State of the Vaults #5

Week ending October 25, 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 🏦

yGUSD

This vault was deployed and performed its first harvest this week. It utilizes the GUSD MetaPool on Curve.fi to farm CRV.

ycrv3pool

As described above, harvest() for this yVault is currently being managed by a bot. Conditions for harvest() calls are: at least 1000 crv3pool (Curve.fi 3pool LP token) earned, at least break even on gas cost vs strategist fee, and at least 24 hours since last call.

yUSD/ycrvBUSD/ycrvsBTC/ycrv3pool/yGUSD

Curve boost levels as of October 23rd (current/max):

• yUSD 1.08/1.52
• ycrvBUSD 1.31/2.24
• ycrvsBTC 1.12/1.83
• ycrv3pool 1.89/2.40
• yGUSD 2.47/2.50

Max boosts are determined in part by strategy holdings relative to total pool holdings while current boost is affected by how much veCRV the Yearn strategies have 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 the API here.

yDAI/yETH/yWBTC

The Yearn dev team is currently testing a DAI-based COMP-farming strategy to be used for the yDAI, yETH, and yWBTC Vaults. In short, this strategy will deposit and borrow DAI on Compound in a leveraged loop (with some help from flash loans), earning DAI interest for the supply (deposit) and COMP on both the supply and the borrow. A limited production version will likely be deployed next week. You can see the current strategy here.

yHEGIC

A strategy for a HEGIC yVault has been in development for several weeks now, originally proposed here by Yearn community member mattdw, who has been collaborating with fellow community member macarse and the Yearn devs to optimize this yVault. The code is nearly finalized, and this vault will be released after official deployment of v2 yVaults as it is better suited to v2 architecture.

yUNI/yCRV

Strategy development for these yVaults utilizing the C.R.E.A.M. platform are in progress and can be seen here.

Furthermore, Yearn’s first v2 yVault has been deployed, the yCRV (Curve DAO Token) Vault. As described in a nice thread here by Yearn dev fubuloubu, this is serving as the first test for the second generation yVaults. There are currently no strategies deployed yet, so absolutely no reason to deposit any CRV into it except for testing.

v2 yVaults

The GitHub repo for v2 yVaults has gone public and can be found here, and the first v2 test vault (yCRV) has gone live, as described above.

However, work is still ongoing, and the code for v2 Vaults is expected to be ready for audit in early November. Details regarding these audits have yet to be finalized, but discussions are ongoing with three different firms.

Odds and Ends

• Regarding any upcoming Uniswap LP strategy, more information will be released as it is available.
• Yearn paid out our first bounty (500 yUSD) for an issue connecting to mobile wallets described here, and more information about Yearn’s bug bounty program can be found here. Be on the lookout for more bounties in the future!

Current Vault Strategies 📝 and Weekly APYs💰

yGUSD

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: N/A, vault is less than 1 week old.

ycrv3pool

StrategyCurve3CrvVoterProxy. Deposits 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 crv3pool and deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 19.66%

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: 0.6%

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: 10.54%

yUSD

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: 3.44%

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: 16.13%

ycrvsBTC

StrategyCurveBTCVoterProxy. Deposits crvsBTC (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 crvsBTC pool at Curve and then this is deposited back into the yVault. Curve boost is currently enabled for this strategy.

Current APY: 2.66%

yDAI

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

Current APY: 7.49%

yTUSD

StrategyTUSDCurve. Deposits TUSD into the Y Pool on Curve.fi and deposits the resultant yCRV into the yUSD Vault.

Current APY: 7.55%

yUSDC

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

Current APY: 5.79%

yUSDT

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

Current APY: 6.5%

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: 0.04%

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, TVL, and strategies several ways: Yearn stats, stats.finance, feel-the-yearn, yearn.party, yVault-ROI
• Use yearn.tools API to view APYs, contract info, as well as boost info for relevant yVaults