They will do so with close consultation with the Crypto Risk Team and other Curve DAO stakeholders to ensure risk is properly assessed and all votes promote the long-term interests of the Curve DAO. While it is possible that the yCRV system can be upgraded to someday grant these voting rights to yCRV token holders (only if enforcing a sufficiently long lock time), there is no current plan to do so. VeCRV (staked CRV), receives a share of trading fees from the Curve protocol (50% of all trading fees generated). Those fees are collected and used to buy 3CRV, the LP token for the TriPool (DAI+USDC+USDT), which are then distributed to veCRV holders. Yearn Compounding veCRV yVault, also known as YVBOOST, is a unique kind of crypto asset that revolves around yield farming and a strategy focusing on recurring investments for steady growth. By pooling YVBOOST, users can gain access to advanced strategies for maximizing their returns in the DeFi ecosystem.
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. Most traders use candlestick charts, as they provide more information than a simple line chart.
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). Just like with any other asset, the price action of Yearn Compounding veCRV yVault is driven by supply and demand. These dynamics can be influenced by fundamental events such as block reward halvings, hard forks or new protocol updates.
- Those fees are collected and used to buy 3CRV, the LP token for the TriPool (DAI+USDC+USDT), which are then distributed to veCRV holders.
- In addition, the algorithm uses the cyclical nature of Bitcoin halvings, which introduce extra supply-side pressure on BTC every 4 years.
- Users receive veCRV tokens (voting escrow Curve Tokens) for doing this, and more tokens are received the longer the locking period.
- The swap may occur via a number of dexs or dex aggregators, but this is abstracted away for the user.
- They are the best choice for those storing a lot of value or planning to hold long term.
- When you zap to this token, under the hood, you are entering an LP position in the yCRV/CRV pool and depositing the LP tokens into the lp-yCRV yVault.
Yearn Compounding veCRV yVault is currently trading on undefined exchanges. To see all exchanges where Yearn Compounding veCRV yVault is trading, click here. The graph below shows the same data as above, but looks at the net token growth over time rather than the TVL of each vault. YveCRV grew steadily from Jan-Mar 2021, then growth dropped to almost zero for a month or so. The growth kicked off again once yvBoost launched, and slowed in line with the slowing in yvBoost growth at the end of June.
This could be an indication that Yearn Compounding veCRV yVault is a bad buy in 2023. You can store coins on exchanges after purchase but we recommend using a dedicated wallet for security and long term storage. They are the best choice for those storing a lot of value or planning to hold long term. 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. 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.
CRV Vote Locking in Yearn
Now it shows I have deposited into the yvBOOST – ETH vault, so far so good. YCRV is Yearn’s new and improved veCRV wrapper system designed to tokenize the different benefits of Yearn’s veCRV position. This system is composed of a base-token called yCRV as well as 3 derivative tokens called activated tokens. To securely store your YVBOOST tokens, it is recommended to use a hardware wallet.
In the table below you can find two types of moving averages, simple moving average (SMA) and exponential moving average (EMA). This means we give all of Yearn’s rewards, which we could have claimed for the protocol, to yveCRV depositors, boosting their weekly rewards. Let’s use a 1-hour candlestick chart as an example of how this type of price chart gives us information about opening and closing prices. The chart is divided into “candles” that give us information about Yearn Compounding veCRV yVault’s price action in 1-hour chunks. Each candlestick will display yvboost’s opening price, closing price, as well as the highest and lowest prices that Yearn Compounding veCRV yVault reached within the 1-hour period.
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. Now we can see the underlying usage of the vaults independent of the USD price volatility.
Yearn Finance yNewsletter #69
Regulations, adoption by companies and governments, cryptocurrency exchange hacks, and other real-world events can also affect the price of YVBOOST. The market capitalization of Yearn Compounding veCRV yVault can change significantly in a short period of time. In addition to the simple moving average (SMA), traders also use another type of moving average called the exponential moving average (EMA). The EMA gives more weight to more recent prices, and therefore reacts more quickly to recent price action. Many Yearn vaults have strategies built on Curve pools and therefore use CRV token to optimize them by voting to direct reward allocations towards those pools. Yearn has been steadily growing its stack of CRV tokens to provide increasing rewards for those vaults.
USD to YVBOOST Chart — Historical price of US Dollar expressed in YVBOOST
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. The Yearn governance multisig will retain the sole ability to cast votes in the Curve DAO.
Yearn Compounding veCRV yVault
The longer time period that CRV is locked for, the more veCRVs are received. Some traders try to identify candlestick patterns when making cryptocurrency price predictions to try and get an edge over the competition. Some candlestick formations are seen as likely to forecast bullish price action, while others are seen as bearish. Many cryptocurrency traders pay close attention to the markets when the current Yearn Compounding veCRV yVault price crosses an important moving average like the 200-day SMA. Liquidity Pool’d yCRV provides liquidity to the new CRV/yCRV pool on Curve, and lp-yCRV holders receive this LP fees and emissions. When you zap to this token, under the hood, you are entering an LP position in the yCRV/CRV pool and depositing the LP tokens into the lp-yCRV yVault.
Notably, VeCRV holders can earn governance rights within the Yearn ecosystem, providing an additional layer of utility to YVBOOST. To put it simply, this vault claims your weekly 3CRV rewards automatically and uses them to acquire more yveCRV (either via market-buy or mint, depending on which is most efficient at time of harvest). This is an overview of how Yearn investment strategies take advantage of CRV vote locking on Curve Finance in order to increase yield. I entered the yvBOOST – ETH pool a couple weeks ago, quite honestly without really understanding what I was doing. I deposited 2 eth and it seems I now have the value of about 1.6 eth as shown on Pickle. When trying to make a Yearn Compounding veCRV yVault forecast, many traders also try to monitor the activity of YVBOOST “whales”, which are entities and individuals that control large amounts of YVBOOST.
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. 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 yvBOOST are locked. While you cannot withdraw from the yveCRV vault, you can actually swap both of these vault tokens on Sushiswap.
This is the yveCRV yVault and it’s different to the other vaults in that you can’t withdraw your tokens. Yearn takes CRV tokens and locks them with the CRV DAO for the maximum 4 year period and continually renews this lock. 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.
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. 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.