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. The first metric we can look for is how many claims are still happening before and after yvBoost launched.
I deposited 2 eth and it seems I now have the value of about 1.6 eth as shown on Pickle. 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.
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.
Yearn Compounding veCRV yVault (YVBOOST) is currently ranked as the #3137 cryptocurrency by market cap.
- To my surprise, a total of 1000 USD was spent in fees claiming 0 USD in rewards – not very cost efficient indeed.
- 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 former allows users to deposit CRV and earn rewards in the form of Curve’s 3-pool LP (3Crv LP) which can be sold or restaked to increase one’s position.
In addition, all Yearn vaults send 10% of earned CRV into this vault for additional boost. 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.
Track Yearn Compounding veCRV yVault Price Today, Live YVBOOST Price Chart & Market Cap
There is a similar feature when withdrawing – the user can withdraw the underlying token from a yVault, or choose to receive their funds in ETH, WBTC, DAI, USDC or USDT. 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. Yearn users deposit their tokens into yVaults, and receive a token in return which is proportional to their share of the vault capital. A yVault is a smart contract with one ore more Strategies sitting behind it. The Strategies are the yield-farming recipes which are created by clever humans (Strategists) and monitored & managed by bots (Keepers). The yVault contains logic which automatically allocates the vault deposits to whichever combination of Strategies gives the best return for the users.
Yearn Compounding veCRV yVault Price
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 (USD 0) . However, I am still a little unsure about the point and the appeal of this vault, so I am hoping someone can help explain to me. 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 (3CRV). You can use this veCRV token to manually rebalance your votes to obtain a boost on your provided liquidity to the Curve.fi platform. VeCRV (staked CRV), receives a share of trading fees from the Curve protocol (50% of all trading fees generated).
How Yearn Boosts Yield
Fee distribution for veCRV holders happens weekly and users need to collect these manually and pay the gas cost for the transactions. Users have tokens which they want to hold – Yearn puts those tokens to work by finding the best yield farming opportunities across DeFi. It does this in a gas efficient way for the user, so even small deposits can get decent returns over time. 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 https://cryptolisting.org/ are locked. While you cannot withdraw from the yveCRV vault, you can actually swap both of these vault tokens on Sushiswap. This is because Yearn and its users provide liquidity on Sushiswap to allow swapping of your yveCRV and yvBOOST tokens for ETH (or anything, really).
Graph above shows the amount of CRV that is deposited into the yveCRV vault. The blue portion of the graph represents the days before yvBoost’s launch while green represents post yvBOOST’s launch. Curve incentivizes users to lock their CRV by giving them a portion of the swap fees through veCRV. Yearn Finance is a Defi protocol that enables users to earn yield from various strategies and one of them is through the yveCRV Vault. 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.
This is part 1 where I look into the usage of the yveCRV vault before and after the introduction of the yvBoost vault. Vote locking, “Boosties”, or “Vote boosting” is a Curve Finance feature where CRV is locked into the Curve DAO. It’s unclear what is driving this pricing mismatch – perhaps the competition for CRV token locking with Convex is causing people to exit their yveCRV positions in search of better yields elsewhere. 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. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
The most common band seems to be the % group, which takes up 55% of total transactions, followed by less than 1% at 18% of total transactions. The farm “Back Scratcher pSLP yvboost” has my balance but I didn’t have to do anything manually. The number of deposits are surprisingly low – dropping to only 1 deposit a day on some days in September. Among all the assets available on CoinStats, these have the most similar market capitalization to Yearn Compounding veCRV yVault.
It looks like yvBoost did reduce the number of manual claiming which can be seen 2 months after its launch. Look at May and June where high prices were also followed with high number of traders who claimed rewards. However, that increase in new users did not lead to an increase in deposits most likely because of high gas prices.