yvboost: yvBOOST Vault Analysis Today we will analyze how the new ZAP by Adria Parcerisas Albés DataDrivenInvestor

yvboost: yvBOOST Vault Analysis Today we will analyze how the new ZAP by Adria Parcerisas Albés DataDrivenInvestor

gauge on curve

In just over 4 months, Convex managed to gather a stunning 38% and kicked Yearn off the veCRV throne. If this trend continuous, the voting power of Yearn might drop to insignificant numbers and it might be lost forever. I think the market, while idle, projects a strong comeback for yvBOOST with new ve ideas and upgrades broadly across yearn vaults. A derivative optimized to earn fees without the bearing of governance responsibilities.

  • The open and programmable nature of DeFi protocols allows them to intertwine with each other beyond anything we’ve seen before.
  • I think the market, while idle, projects a strong comeback for yvBOOST with new ve ideas and upgrades broadly across yearn vaults.
  • EURN/EURT-f tokens are staked in the gauge on Curve to earn CRV rewards.
  • 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.

They represent a user’s share of the yVault that they are participating in. Maybe you want to swap for a higher yield, or maybe you just like swapping. Whatever word you choose, get supercharged yields on CRV with Yearn.

This creates an interesting situation in which Convex vaults are earning a higher overall APY due to CVX rewards, while Yearn is providing depositors with a better return on their CRV. 41 of the 46 V2 vaults employ some sort of strategy that involves earning CRV through boosted rewards. Remember, boosting requires locking up CRV, meaning that Yearn has to have some sort of way to funnel CRV into the hands of the protocol. Based on Yearn’s share of the total veCRV, 50% of trading fees will be claimed as CRV, out of which 10% will in turn be locked into the Curve DAO for more veCRV. Since Convex launched in May, the voting power of Yearn has dropped significantly to sub 7% and yveCRV dramatically lost its peg, trading at a 60% ‘discount’.


We do see that after yvBoost was introduced, the daily approvals seem to be higher than before up until July. To be sure, I plotted a bar graph 3 months before yvBoost and 3 months after. The results came out to be vs 1700 , about a 44% increase in new users. We can’t conclude this increase was solely credited to the launch of yvBoost but it did play a part.

As with Yearn, the CRV locked from the cvxCRV vault is used to boost the rewards of the vaults for Curve LPs. In these, users can stake their tokens to earn trading fees, along with CVX rewards, and boosted CRV rewards. Similar to Yearn, this increases capital efficiency and maximizes yield for LPs in that they can earn the boosted rewards without needing to hold and lock CRV.

There isn’t too much to discern from this – the value of both vaults declined post May 2021. For the yvBoost vault, this may have been due to withdrawals being higher than deposits, or it could be due to the USD value of yveCRV-DAO tokens dropping. Same with the yveCRV graph – we know that there are no withdrawals, but were the rises due to price or deposits? Each yVault is structured around a particular underlying token – there are vaults for Eth, USDC, WBTC and many others. Users can deposit in the yVault native token, or they can deposit using any other token & take advantage of Zaps. Zaps are smart contracts which take an input token and swap it for the underlying token in a gas efficient manner.

locking your crv

As a significant amount of the Yearn strategies currently uses Curve to generate yield, it is important to sustain a decent amount of voting power for the long-term. What’s interesting is the compounding is in the base token yveCRV-DAO not yvBOOST. YveCRV-DAO has less liquidity on market, and depositing that in yvBOOST without issuing new tokens. So in theory, the price of yvCRV-DAO should rise faster than yvBOOST and so compounding there should be somewhat dampened vs the price of yvBOOST. Finally, another important thing is the total inflow of tokens that are entering the vault.

Over 15% of all value locked in DeFi is within these 3 protocols. This is purely non scientific but I would say that paying more than 20% of the transaction as fees does not feel good and might not be that cost efficient either. The number of transactions that paid more than 20% of rewards value in fees represent 27% of all transactions.

yVault Usage – Total Value Locked in USD

While this may be related to general market conditions, as Yearn’s share has increased, the price of CVX has decreased. That indicates that Yearn’s massive CVX harvests have been putting considerable downward pressure on the tokens price. This is basically, “let’s try and get peg by getting a curve gauge by attracting a bunch of people who will get stuck in the pool if yvecrv loses peg again”. This slightly complicates things as its price slowly rises vs others but does reduce complexity in dealing with an external yield stream. Would be cool though, to have Curve’s native veCRV 3pool rewards boosted by supplying liquidity to a yveCRV-DAO factory pool via the external stream of 3pool that vault produces.

In addition to farming rewards, holders of cvxCRV also can access liquidity, as cvxCRV is tradable on DEXs like SushiSwap. Both protocols are trying to get their hands on as much CRV as possible to lock it for veCRV, so they can earn the largest possible boost, and therefore the highest yield, for their depositors. CryptoRank provides crowdsourced and professionally curated research, price analysis, and crypto market-moving news to help market players make more informed trading decisions.

crv rewards

Earned SCREAM is harvested, sold for more wFTM, and deposited back into the strategy. Welcome to The Vaults at Yearn, where you can find in-depth information about how Yearn’s yVaults operate and the actions these vaults perform. This article will maintain a one-stop location for all yVault descriptions. All version 1 yVaults have been deprecated, and any in production are now on version 2. The number of deposits are surprisingly low – dropping to only 1 deposit a day on some days in September. Proposal was put forward by the Curve team to remove CRV rewards from the alUSD pool.

CRV vote locking

Deposits USDC to the DAI-USDC-USDT Stable Pool on Balancer.fi, BAL is harvested, sold for more USDC, and deposited back into the strategy. Stakes wETH at Lido.fi to mint stETH which accumulates ETH 2.0 staking rewards. This strategy will buy stETH off the market if its cheaper than staking. If you want to get into the yvBOOST vault, buy some yveCRV from sushiswap directly as you will get more yveCRV than if you bought crv and deposited them in the contract. CoinGecko provides a fundamental analysis of the crypto market. In addition to tracking price, volume and market capitalisation, CoinGecko tracks community growth, open-source code development, major events and on-chain metrics.

Rewards are swapped for one of the underlying assets and resupplied to the liquidity pool to obtain more bBTC/sbtcCrv. This vault accepts deposits of saCRV tokens obtained by supplying either DAI or sUSD to the liquidity pool on Curve here. SaCRV 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 saCRV. Rewards are swapped for one of the underlying assets and resupplied to the liquidity pool to obtain more MIM-UST-f. This vault accepts deposits of EURN/EURT-f tokens obtained by supplying either EURN or EURT to the liquidity pool on Curve here.

crv holders

Yearn, itself, deposits 10% of all CRV earned into this vault and gives its 3crv rewards to vault token holders which is where the boosted weekly rewards come from. The amount of veCRV locked per yveCRV is also higher than one. Yearn dao decides how to allocate the boosts granted by the CRV locked in the yveCRV vault and all yearn vaults benefit from it, not just yourself.

Market capitalization of Yearn Compounding veCRV yVault is – and is ranked #N/A on CoinGecko today. With a circulating supply of 0 YVBOOST, Yearn Compounding veCRV yVault is valued at a market cap of -. What was strange is that the number of approvals are high but are not translated to the number of deposits.

Yearn yVaults for CRV Stakers

Simply convert below and start earning that sweet sweet yield. Adding Yearn Compounding veCRV yVault to MetaMask allows you to view your token holdings, trade on decentralized exchanges, and more. You can copy YVBOOST’s contract address and import it manually, or if you’ve installed MetaMask’s chrome extension, add YVBOOST to MetaMask with one click on CoinGecko.

yvboost are swapped for WETH and resupplied to the liquidity pool to obtain more steCRV. Yearn Compounding veCRV yVault is on a upward monthly trajectory as it has increased 0.9% from $2.24 since 1 month ago. You will receive an email with instructions for how to confirm your email address in a few minutes. Layer 2 protocols are a set of off-chain solutions running on top of Layer 1 blockchains to compact the bottlenecks of scaling and transaction costs.

Yearn Finance (YFI) Climbs 16% Despite Crypto Bloodbath Elsewhere

Curve’s popularity is attributable to several different factors. One is the minimal impermanent loss risk for liquidity providers. While members of the Bankless Nation are likely familiar with the concept, a liquidity provider on an AMM faces impermanent loss when there is volatility between the underlying assets in a pool. Same price, whether it be dollar-pegged stablecoins, or different variants of the same asset such as ETH and stETH.

It does take a bit of time to understand how they work before truly appreciating them. However, high gas prices deter a lot of people from using Yearn unless they have a big enough bag to deposit. However, that increase in new users did not lead to an increase in deposits most likely because of high gas prices. We see that on most days, the number of approvals are higher than number of deposits. Users who have given approvals are not depositing into the vault. My suspicion is that new users did not expect that they have to pay a fee for approval.