This means that the market is valuing the flexibility of the unencumbered CRV tokens over the income stream by a factor of nearly 3! With yveCRV trading at this much of a discount, it is not surprising that there had been very low growth in the yveCRV since July 2020. Any required yveCRV tokens can be purchased on the open market at a steep discount to the underlying CRV tokens. Rewards are harvested, sold for more usdn3CRV, and deposited back into the vault.
If we look at the yvBoost vault’s balance, we see it managed to accumulate 10M deposits in just 1 month after launch. If we referred to the previous graph, we see that during the same period, only 3M CRV tokens were deposited. As we can see from the graph above, Yearn has a boost, and thus APY, advantage across a majority of the different pools.
The protocol is maintained by various independent developers and is governed by YFI holders. The balance appeared below so I had used the second «Deposit» button. Now it shows I have deposited into the yvBOOST – ETH vault, so far so good. However, this did not last long as the pool balance stagnated Mid June onwards once it reached 12M CRV tokens. There is also a clear connection between the amount of CVX rewards earned by Yearn, and the price of CVX.
If you’re looking for a set of practical and insightful crypto market information and data, we have the analytics tools to suit your business needs. To my surprise, a total of 1000 USD was spent in fees claiming 0 USD in rewards – not very cost efficient indeed. Look at May and June where high prices were also followed with high number of traders who claimed rewards. Curve v1 pools are for pegged assets and whilst Curve has been useful in helping volatile stable assets become more stable, yveCRV hasn’t shown of being a pegged assets in a few months.
Yearn has been steadily growing its stack of CRV tokens to provide increasing rewards for those vaults. The ROI calculations for the yveCRV vault is a little simpler – each week there is a deposit of 3CRV tokens into the vault which are the income stream generated from the locked CRV tokens. We take the value of the deposited 3CRV tokens over the value of the CRV tokens in the vault over each 7 day period and annualise it to get the vault ROI. Note, this assumes that users withdraw their returns from the vault. Let’s have a look at the TVL denominated in USD over time for these two vaults, shown in the graph below.
Yearn yVaults, yveCRV-DAO and yvBOOST
Instead of manually restaking every week, the vault automatically does that for you thus massively save you on fees. When users deposit CRV into the yveCRV vault, they receive 1 yveCRV-DAO token for each CRV deposited. Given that yveCRV-DAO tokens are then deposited into the yvBoost vault, it makes sense to look at the TVL of these two vaults denominated in CRV.
The graph below shows the TVL of the two vaults in equivalent CRV tokens. Now we can see the underlying usage of the vaults independent of the USD price volatility. We saw rapid growth of the yveCRV vault to March 2021, then it levelled off considerably. The launch of yvBoost in April saw rapid takeup of this vault, with the TVL approaching that of the yveCRV vault within 6-7 weeks. This growth in yveCRV was driven by the yvBoost growth because yvBoost requires yveCRV-DAO tokens to deposit. These are obtained either by depositing CRV into yveCRV and minting new tokens, or by purchasing them on the secondary market.
VeCRV , receives a share of trading fees from the Curve protocol (50% of all trading fees generated). Those fees are collected and used to buy 3CRV, the LP token for the TriPool (DAI+USDC+USDT), which are then distributed to veCRV holders. Many Yearn vaults have strategies built on Curve pools and therefore use CRV token to optimize them by voting to direct reward allocations towards those pools.
- In doing so you give up the ability to get your CRV back, but gain a perpetual share of the revenue of the vault in return.
- Let’s have a look at the TVL denominated in USD over time for these two vaults, shown in the graph below.
- They can do this at Sushi or create a Curve pool , but they should offer liquidity staking and add incentivizes of YFI tokens.
- This also increases capital efficiency and yields for users in that they can access these rewards without having to own and lock CRV themselves.
yvboosts act as a multiplier on the amount of CRV inflation a liquidity provider can earn. Boosting can be highly lucrative, as it is capable of increasing an LP’s CRV rewards by up to 2.5x. To incentivize longer lockups, the amount of veCRV you’ll receive is proportional to how long you decide to lock your CRV.
One is that people still preferred selling their rewards on a weekly basis for cash flow as compared to continuously using the cash flow to increase their position. Vote locking, “Boosties”, or “Vote boosting” is a Curve Finance feature where CRV is locked into the Curve DAO. If there are doubts about whether step 2, this Curve Gauge proposal, will pass, Yearn might consider using the Bribe system to stimulate people to vote ‘Yes’. You might ask yourself, why not just an yveCRV/CRV pool or an yvBOOST/CRV pool? Because this setup allows 66,66% of the CRV gauge rewards to flow to yveCRV and yvBOOST holders, where this else would be 50%.
EURN/EURT-f tokens are staked in the gauge on Curve to earn CRV rewards. Rewards are swapped for one of the underlying assets and resupplied to the liquidity pool to obtain more yDAI+yUSDC+yUSDT+yBUSD. This vault accepts deposits of BUSD3CRV-f tokens obtained by supplying BUSD, DAI, USDC, USDT, to the liquidity pool on Curve here. BUSD3CRV-f tokens are staked in the gauge on Curve to earn CRV rewards.
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Java developer average salary in amsterdam 2022 the complete guide software development funds or migrate your balance to the v2 Curve SAAVE Pool yVault to continue earning yield. Withdraw funds or migrate your balance to the v2 Curve renBTC Pool yVault to continue earning yield. Withdraw funds or migrate your balance to the v2 Curve sBTC Pool yVault to continue earning yield. Withdraw funds or migrate your balance to the v2 Curve Y Pool yVault to continue earning yield. Withdraw funds or migrate your balance to the v2 Curve UST Pool yVault to continue earning yield.
This shows that the 7M in deposits in the yvBoost vault most likely came from yveCRV purchased in secondary markets like in Sushiswap. With the ability to zap in tokens, deposits in the vault could also come from other assets other than yveCRV. Approximately 11M worth in March this year) and the fees that they receive from their locked veCRV gets redistributed to users who use the yveCRV Vault. That simply means more yield for you since you’re leveraging on Yearn’s big locked CRV pool.
Yearn Compounding veCRV yVault Performance
Furthermore, I have calculated several things taking into account the contract where yvBOOST was created and I have taken the interval data from the new ZAP that was built. So, the data shown during this article is extracted internally from Etherscan thanks to Flipside platform sql tools. The pricing above is curious – why is yveCRV valued at such a steep discount to CRV? We will see if there is any impact from the Return on Investment of the vaults in question.
It is a good signal because there is a lot of transactions in a short period of time, showing that people are using it and are interested in continuing doing it. The graph below shows the same data as above, but looks at the net token growth over time rather than the TVL of each vault. Here we see more clearly the impact of yvBoost on the growth of yveCRV. YveCRV grew steadily from Jan-Mar 2021, then growth dropped to almost zero for a month or so.
Its 24-hour trading volume is reported to be at $0.00 with a total of 0 transactions. YvBOOST/WETH contract address is 0xe63a3d5d02247e11c3cf99450bdd997e36ce6b4e, with a Fully Diluted Valuation of $3.45M and a liquidity pool of $1.15M. Yearn Finance is a suite of products in Decentralized Finance that is designed to generate yield on smart contract platforms like Ethereum.
Yearn will create a proposal to add a Gauge to this Factory pool. YvBOOST w/ 91% of yveCRV-DAO supply contained signals strong mentality for holders, buying themselves out of a dip together as a force. It doesn’t need to buy it all since that would set its price to infinity, and at 100% APY, 16% self purchase should occur relatively early in the year. Most existing supply is in (90%) is in yvBOOST, which is committed to repurchasing yveCRV. This signals a willingness to further entrenching themselves until the peg is returned and may indicate the dump pressure wont be too bad when the peg returns.
Yearn Compounding veCRV yVault (YVBOOST) price has declined today.
The voting power of Yearn for the Curve Gauge Voting and the Governance voting systems has dropped significantly during the past months. Staking your CRV directly on the Curve.fi platform means locking your CRV token in exchange for a non-transferrable veCRV token that allows you to manually claim a share of the protocol’s fee . You can use this veCRV token to manually rebalance your votes to obtain a boost on your provided liquidity to the Curve.fi platform. Now you might be wondering how one would extract any gains made from your CRV tokens in the vault, when as mentioned earlier, any CRV deposited into either the yveCRV or the yvBOOST are locked. While you cannot withdraw from the yveCRV vault, you can actually swap both of these vault tokens on Sushiswap.
In the graph below, I plotted the number of users vs number of transactions that has paid for fees despite claiming rewards that have no value . A peculiar incident I came across is that there has been transactions that are paying fees to claim zero rewards. I did not know that claming 0 rewards is possible but there has been 89 transactions doing so since the launch of yveCRV vault. If we start analyzing the total amount of tokens moved inside the yvBOOST vault, we can observe that there is a lot of volume of deposits and withdrawals.
This means we give all of Yearn’s rewards, which we could have claimed for the protocol, to yveCRV depositors, boosting their weekly rewards. Beyond staking, another major incentive for CRV is the ability to boost your rewards on provided liquidity. For instance yearn converts the profits from EPS farming into crv tokens and deposits them to the vault, without minting any new yveCRV. So 1 yveCRV allows you to get more fees than if you were to lock up 1 CRV yourself.
The yvBoost vault makes the choice based on what is best value at the time – we will examine the relative pricing a bit later. And a majority of that relies on Curve’s yield as its foundation. To my surprise, a total of 1000 USD was spent in fees claiming 0 USD in rewards – not very cost efficient indeed.