Yearn V2

• multi-strategy vaults algorithmically rotating strategies between DeFi products to hunt for the highest possible yields

• strategy vetting process to include new strategies to Yearn

yVaults

• deposit assets in the yVault pool to receive interest bearing token yToken, yields earned are automatically compound from up to 20 strategies

• the yVault change its strategies capital allocation, each strategy has its capital cap

• performance fee is deducted from yield earned every time a vault harvests a strategy

• no deposit/withdrawal fees charged

• ETH strategy example

  • deposit ETH, use ETH as collateral to borrow DAI

  • deposit DAI to DAI yVault

  • DAI yVault puts DAI into Curve to earn LP fee & get LP tokens

  • LP tokens are staked in Curve to earn CRV

  • CRV earned are sold for ETH & compound

• as borrowing exposes to liquidity risk, the yVault robot monitor prices & keep collateral at safe level

yCRV

• lock CRV to Yearn's veCRV position to get yCRV

• yCRV can be activated to st-yCRV & lp-yCRV

  • st-yCRV (Staking Rewards) - receives weekly admin fees from locked CRV & revenue from selling voting powers (bribes)

  • lp-yCRV (Liquidity Pool Rewards): receive & auto-compound CRV/yCRV LP fees & emissions

yBribe

• voting powers influence the direction of CRV emissions & pools boosting at weekly gauge votes

• Buyer - yBrivbe pairs sellers to buyers who are looking for voting power

• Seller - veCRV holders receive compensation from buyers

Keep3r - Automated vault housekeeping

• harvest & earn functions are automated through the Keep3r bots

• Keep3r motivates external entity to perform smart contract actions in good will without malicious result

• Keep3rs are responsible to purchase new underlying collateral by selling the earned tokens while moving the profits back to the vault & strategies

Adoption of ERC-4626 standard

• standardise & streamline the design of yield-bearing tokens

• a shared interface for smart contracts that draw liquidity from deposited tokens for yield farming strategies

• allows users to withdraw more than their initial payment based on the amount of profits the vault has generated

• apps built on top of ERC-4626 vaults are interoperable