# 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 <a href="#what-are-yvaults" id="what-are-yvaults"></a>

* 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 <a href="#what-are-yvaults" id="what-are-yvaults"></a>

* 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 <a href="#what-is-ybribe" id="what-is-ybribe"></a>

* 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&#x20;

### Keep3r - **Automated vault housekeeping** <a href="#yvault-fee-structure" id="yvault-fee-structure"></a>

* 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
