Fee distribution for veCRV holders happens weekly and users need to collect these manually and pay the gas cost for the transactions. You can use this veCRV token to manually rebalance your votes to obtain a boost on your provided liquidity to the curve.finance platform. Complete cryptocurrency market coverage with live coin prices, charts and crypto market cap featuring coins on 962 exchanges. Now the veCRV-DAO yVault (also known as the yveCRV Vault) is a little different to the others.
Live Yearn Compounding veCRV yVault Price Data
The returns to the users are in the form of the 3CRV tokens earned by the veCRV – like the CRV staking contract, these are collectable weekly as an income stream, and must be collected manually. YVault depositors receive yveCRV-DAO tokens as their share in the vault. 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.
Tokenomics (Locked)
The CRV token has voting rights in the Curve DAO which makes decisions on the Curve protocol – things like fees, LP rewards, swap parameters and pools launched. In some Curve pools, liquidity providers receive CRV tokens to incentivise liquidity in the pools. To encourage users to stay as CRV hodlers, there is a facility to lock CRV tokens into the CRV DAO for a fixed period of up to 4 years.
Enter Yearn’s yveCRV and yveBOOST vaults
The current price of Yearn Compounding veCRV yVault (YVBOOST) is approximately $1.09, reflecting a decrease of −7.65% in the last 24 hours. The YVBOOST trading volume in the last 24 hours stands at $1,770.31. Yearn Finance is a suite of products in Decentralized Finance (DeFi) that is designed to generate yield on smart contract platforms like Ethereum. The protocol is maintained by various independent developers and is governed by YFI holders. Reward amounts will be determined based on the type and relevance of the information provided.
- This is the yveCRV yVault and it’s different to the other vaults in that you can’t withdraw your tokens.
- We saw that the usage of yveCRV had already dropped prior to the introduction of yvBoost, so there was no opportunity for yveCRV usage to fall much further.
- The Strategy behind this vault collects the 3CRV rewards each week, swaps them for more yveCRV then deposits them back into the vault.
- When a user withdraws from the yVault, they get more tokens than they deposited.
- 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.
- We attempted to answer the question of whether there was an impact on the usage of the yveCRV vault from the introduction of the yvBoost vault – a more improved & automated version of yveCRV.
yvBoost & yveCRV Vaults
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. No part of the content we provide constitutes financial advice on coin prices, legal advice, or any other form of advice meant for you to rely on for any purpose. Any use or reliance on our content is solely at your own risk and discretion.
CoinCodex tracks 42,000+ cryptocurrencies on 400+ exchanges, offering live prices, price predictions, and financial tools for crypto, stocks, and forex traders. Among all the assets available on CoinStats, these have the most similar market capitalization to Yearn Compounding veCRV yVault. It is worth noting that native veCRV cannot be transferred, and the only way to obtain it is by vote-locking CRV. Vote locking, “Boosties”, or “Vote boosting” is a Curve Finance feature where CRV is locked into the Curve DAO.
The yVault contains logic which automatically allocates the vault deposits to whichever combination of Strategies gives the best return for the users. The rewards from the yield farming accrue into the vault, so the value of the vault token is always increasing. When a user withdraws from the yVault, they get more tokens than they deposited. This additional amount is the yield the vault has earned on their behalf. When a user deposits CRV into the vault, that CRV is locked on the curve.finance platform as veCRV and the user is returned a tokenized version of veCRV, yveCRV.
- While the general information below about how Yearn boosts yields within the Curve ecosystem is still accurate, yveCRV and yvBOOST have both been migrated to the yCRV liquid locker.
- The yvBoost vault makes the choice based on what is best value at the time – we will examine the relative pricing a bit later.
- Trading and investing in digital assets is highly speculative and comes with many risks.
Note, this assumes that users withdraw their returns from the vault. 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. The swap may occur via a number of dexs or dex aggregators, but this is abstracted away for the user. There is a similar feature when withdrawing – the user can yvboost withdraw the underlying token from a yVault, or choose to receive their funds in ETH, WBTC, DAI, USDC or USDT.
Yearn buys yvBOOST from the market, unwraps it into yveCRV, and donates that yveCRV into the yvBOOST vault, increasing the underlying value of yvBOOST. A “Yearn boost” tool displaying Yearn’s current active and potential boost is available here. Once CRV holders vote-lock their CRV, changing it into veCRV, they can then vote on various DAO proposals and pool parameter changes which are proposed, or propose their own changes. While the general information below about how Yearn boosts yields within the Curve ecosystem is still accurate, yveCRV and yvBOOST have both been migrated to the yCRV liquid locker.
Alternatively, users can take advantage of the Zap function and deposit pretty much any ERC-20 token into the vault. They can also withdraw using Zap and collect WETH, WBTC, DAI, USDT or USDC. As the Zap conversions occur on the way in and out, the user maintains price exposure to the yveCRV-DAO tokens whilst deposited in the vault.
We will examine what impact the launch of the yvBoost yVault had on the usage of the yveCRV yVault. They represent a user’s share of the yVault that they are participating in.
Users receive veCRV tokens (voting escrow Curve Tokens) for doing this, and more tokens are received the longer the locking period. VeCRV holders can still participate in governance voting, they receive 50% of Curve trading fees and they qualify for boosted rewards (up to 2.5x) when they provide liquidity in Curve. In true Yearn fashion there is a vault & a strategy to maximise the returns from this CRV locking process.
It starts with the CRV token, the governance & reward token from Curve. Curve is a dex which specialises in stableswaps – swaps between tokens which have approximately the same value. Examples are ETH/stETH or swaps between dollar pegged stablecoins. Curve has optimised their swap code to make these swaps efficient from both a liquidity impact and fee perspected – see this post for a further exploration of Curve & stablecoin swaps. 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’s important to know that whatever token the user deposits or withdraws, they maintain price exposure to the underlying token of the vault whilst deposited. This means we give all of Yearn’s rewards, which we could have claimed for the protocol, to yveCRV depositors, boosting their weekly rewards. Users have tokens which they want to hold – Yearn puts those tokens to work by finding the best yield farming opportunities across DeFi.