Yearn State of the Vaults #8

Week ending November 15, 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 Compound Pool yVault

While we’re all anxiously awaiting the official launch of several v2 yVaults (with more test vaults launching each day), a new v1 yVault was deployed this week. This yVault farms Curve’s Compound pool in exactly the same manner as Yearn’s other Curve pool yVaults. You can deposit here, find the contracts here, and the strategy is described below.

Curve Pool yVaults

Curve boost levels as of November 13th (current/max):

  • Y Pool: 1.19/1.64
  • BUSD Pool: 1.38/2.00
  • sBTC Pool: 1.41/1.95
  • 3pool: 1.80/2.25
  • Compound Pool: N/A

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.

Additionally, logos for several of Yearn’s v1 Curve yVaults got a visual update thanks to Yearn design team maestro WrongNebula.

veCRV Backscratcher

Deployed last week, Yearn’s veCRV backscratcher has seen several updates this week, including a zap function that can collect vested CRV as well as any from your wallet and gauges all in one transaction, and a brand new official UI here. Additionally, the crv.ape.tax UI has also added a zap function for depositing claimable 3pool rewards directly into Yearn’s 3pool yVault.

Furthermore, a discussion is ongoing on Yearn’s governance forums to decide how Yearn should use our veCRV to vote in Curve’s DAO. One of the most relevant points is gauge weight voting, with one possible suggestion being voting based on capital allocation to yVaults.

HEGIC yVault

WARNING: This v2 yVault is under active testing has not been audited. Bugs may exist that lead to total loss of user funds. Do not deposit funds unless you accept these risks and understand you can lose up to 100% of your deposit.

This was a big week for Yearn’s v2 HEGIC yVault. Deposits were reopened for this vault’s second strategy to buy a WBTC lot. The 888,888 HEGIC limit for this lot was reached, and some additional HEGIC was donated to the vault which helped to increase its share price. A UI can be found here, the yVault contract is here, the original ETH strategy is here, and the WBTC strategy is here.

SushiSwap LP yVault

https://twitter.com/andy8052/status/1325802781857501184?s=20

WARNING: This v2 yVault is under active testing has not been audited. Bugs may exist that lead to total loss of user funds. Do not deposit funds unless you accept these risks and understand you can lose up to 100% of your deposit.

As teased last week, a v2 test SushiSwap LP yVault launched this week for the ETH-DAI pair. This strategy stakes the LP pair, farms SUSHI, and sells the SUSHI back for more of the underlying LP pair. Find the yVault contract here and the strategy contract here. You can also find the strategy GitHub repo here.

USDC yVault

WARNING: This v2 yVault is under active testing has not been audited. Bugs may exist that lead to total loss of user funds. Do not deposit funds unless you accept these risks and understand you can lose up to 100% of your deposit.

This past week, a v2 test USDC yVault was deployed with a new strategy. You can find the vault contract here and the strategy contract here. This strategy currently lends USDC to dy/dx to earn yield. Furthermore, a leveraged USDC COMP-farming strategy (identical to the DAI-based version) will be launching soon as well.

Odds and Ends

  • Maker’s most recent executive vote, which included onboarding YFI as collateral, passed on Nov 8, 2020, 22:19 UTC. Three days later, YFI was made available as collateral with a $7 million debt ceiling, which was nearly reached within the first 24 hours. In response, Maker’s governance has already begun signal voting to increase the YFI debt ceiling. In the future the yYFI Vault may utilize MakerDAO to open a CDP and mint DAI as one possible strategy.
  • This past week, two YIPs passed that directly affect Yearn’s v2 yVaults. YIP-51 defined the fee structure for yVaults (2% management fee, 20% performance fee, removed withdrawal fee), while YIP-52 clarified how these fees will be divided between strategists, stakers, and contributors. For more insight on these and other issues, check out our weekly Yearn Governance Roundup.
  • Yearn’s first audit of the v2 yVaults is ongoing, with a second audit planned for later this month.

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: N/A. No data yet as strategy is less than one week old.

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: 16.80%

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: 13.28%

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: 16.55%

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: 5.23%

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: 2.02%

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: 10.24%

TUSD yVault

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

Current APY: 4.92%

USDC yVault

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

Current APY: 5.52%

USDT yVault

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

Current APY: 6.3%

ETH yVault

StrategyMKRVaultDAIDelegate. Deposits ETH into a Maker CDP 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 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: 0.82%

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: 10.31%

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 🔗

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Yearn State of the Vaults is a weekly publication that covers news, upcoming changes, and current strategies for all of Yearn Finance’s yVaults.

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