Web3 Learning Notes
  • Web3 Learning Notes
  • 📖Crypto Basis 101
    • Blockchain & Cryptocurrency
    • Start dealing with Crypto
    • To invest safe
    • Risk Management
    • Web 3.0: User Ownership
    • Rethinking 'Why Crypto?'
  • 💰DeFi
    • What is DeFi
    • Stablecoin 101
    • Journey of a transaction
    • MEV (Miner Extractable Value)
    • Crypto Derivatives
    • To play safe in DeFi
    • DeFi Tools
  • 🧠DEFI Innovations
    • Lending & Borrowing
      • AAVE V3
      • Morpho - APY Optimiser
      • SILO - Risk Isolator
    • Automated Market Maker
      • Uniswap V3 - Concentrated Liquidity
      • Trader Joe V2 - Liquidity Book
      • 1Inch V2 - AMM Aggregator
    • Low Slippage Swapping
      • Curve V2
      • Bebop
      • Platypus Finance
    • Yield Aggregator
      • Yearn V2
      • Instaapp
      • Alpaca Finance
    • Perpetual Exchange
      • GMX
  • 🎇Techs of Chains
    • ETH - Ethereum
    • BNB - Binance Coin
    • AVAX - Avalanche
    • DOT - Polkadot
    • SOL - Solana
    • NEAR - Near Protocol
    • XTZ - Tezos
    • MINA - Mina Protocol
  • 🖼️NFT
    • What is NFT
    • Token standard 721 & 1155
    • How to get your first NFT
    • How to mint like a pro
    • To play safe in NFT
    • NFT tools
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On this page
  • yVaults
  • yCRV
  • yBribe
  • Keep3r - Automated vault housekeeping
  • Adoption of ERC-4626 standard
  1. DEFI Innovations
  2. Yield Aggregator

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

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Last updated 2 years ago

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