Yearn State of the Vaults #9
Week ending November 22, 2020
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 November 20th (current/max):
- Y Pool: 1.23/1.73
- BUSD Pool: 1.40/1.98
- sBTC Pool: 1.44/1.98
- 3pool: 1.79/2.34
- Compound Pool: Boosted, but API not live yet
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.
The vote to distribute Curve.fi admin fees to veCRV holders is live. At time of writing, the vote had already reached required quorum with 100% Yes votes. Should these results hold, approximately three days after the vote closes, veCRV holders (and thus, yveCRV holders) should receive their first admin fees in the form of 3pool LP Tokens.
The HEGIC v2 yVault is now winding down following a successful test run and will re-launch in full following Yearn’s v2 yVault code audits.
As mentioned last week, MakerDAO recently onboarded YFI as a collateral option and the $7 million debt limit was reached almost immediately. A signal vote was quickly voted on and determined to increase the debt limit to $20 million for YFI-A. This has been included as a part of the current executive vote, which must reach more votes than the prior executive vote to pass. Typically, these votes reach the threshold within a few days, meaning the new YFI debt limit should be established within the next week.
Additionally, there is a current proposal from Yearn dev Banteg on Maker’s governance forums to whitelist Yearn on the Maker OSM. Similar to previous proposals for Maker’s ETHUSD and BTCUSD oracles, this proposal would allow Yearn’s yYFI vault to know Maker’s liquidation price an hour in advance. This is a huge benefit that enables the strategy to efficiently rebalance and unwind.
Uniswap LP yVault
This week, Yearn developers deployed a test vault to further explore a strategy staking Uniswap LP tokens in pickle.finance to earn PICKLE rewards but while not selling the farmed PICKLE. The purpose of this strategy is to test the limits of v2 design, and it has helped to identify parts that need improvement, including testing strategy migration. You can find the vault contract here and the strategy here.
This week, Yearn’s v0.2.0 Vault contracts were released on GitHub. Some updates to this version included:
- A “guest list” feature, which can check that an address is holding a balance of a token before allowing contract interaction;
- Adding the ability to report losses in vault strategies;
- Adding the ability to recover ERC721 sent to contracts;
- Updating default fee settings based on recent YIPs.
Odds and Ends
- Yearn developers recently created a PR to disallow deposits and withdrawals in the same block to Yearn’s Vaults, in an effort to help prevent flash-loan attacks.
- Yearn’s first audit of the v2 yVaults is ongoing, and the second audit is scheduled for later this month.
- If you’ve been following Yearn contributor Andre Cronje’s updates, you see he’s been working to generate a robust framework for on-chain options. Such on-chain options could offer a variety of use cases for integration into future yVault strategies.
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 has yet to call first harvest().
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: 22.76%
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: 16.25%
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: 21.93%
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: 6.93%
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: 0.45%
StrategyDAICurve. Deposits DAI into the Y Pool on Curve.fi and deposits the resultant Curve-Y into the Curve Y Pool yVault.
Current APY: 12.71%
StrategyTUSDCurve. Deposits TUSD into the Y Pool on Curve.fi and deposits the resultant Curve-Y into the Curve Y Pool yVault.
Current APY: 5.53%
StrategyDForceUSDC. Deposits USDC into dForce.network and farms dForce Token, which is sold for USDC and redeposited back into the yVault.
Current APY: 7.21%
StrategyDForceUSDT. Deposits USDT into dForce.network and farms dForce Token, which is sold for USDT and redeposited back into the yVault.
Current APY: 5.38%
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: 1.78%
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: 4.16%
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.
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