Fixed Return YFI Vault

Farming and staking APY’s fluctuate dramatically not only across the defi space, but seemingly for every protocol offering a liquidity mining program -’s V2 vaults included.

As a result, I’ve found myself unstaking my assets from locations with a low APY and restaking my assets in locations offering better APY, far more often than I’d like to, as the APY generally decreases relatively quickly over time. This has also led to ridiculously large gas expenditures.

And I don’t believe I alone am in such a predicament. For this reason, I am suggesting the introduction of a fixed rate YFI vault that offers a reasonable APY, with a time lock (kind of like a CD with a pre established maturation period) and a limited capacity.

This would offer a liquidity mining option for long term YFI token holders that would have the following benefits:

  1. A consistent APY that actually lasts a year (or more).

  2. Reduces the tendency to stake YFI elsewhere (e.g Aave, Gdao, etc.)

  3. Decreases the amount of YFI in circulation / on exchanges.

  4. YFI price increase resulting from a reduction in liquid YFI.

  5. Increases APY for V2 YFI vault as some token holders will chose to migrate into the long term fixed rate vault.

  6. Increases TVL for yearn as more liquidity is stored for longer.

Given the limited supply of YFI, I would suggest this vault be financed by a portion of the buybacks, that would allocated to a treasury escrow and periodically distributed to those staked in the long time horizon vault.

This would incentivize long term liquidity provision for yearn, and give YFI hodlers peace of mind, knowing they are earning a decent APY without having to chose between exposing their assets to a rug pull, or earning peanuts/ the savings rate after 4-5 weeks of staking. I see this as a win - win, long as there is transparency and this vault, like the yve-crv, is clearly distinguished from the rest as having a maturation period.

Thoughts? :thought_balloon:

Best regards,


I would support this. Similar to what Anchor protocol is offering with their fixed 20% APY.


The idea is good. Also C.R.E.A.M. and Pancake swap (on bsc) do something similar. One counter-argument could be that in this way YFI would not be used to generate yield in other protocols, which in my opinion would not be a good thing. Perhaps I would mix the already existing strategies with a special remuneration for YFI token-holders that have invested in our v2.

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