# \[Proposal\] Composable Yield Vaults

**URL:** <https://gov.yearn.fi/t/proposal-composable-yield-vaults/12348>\
**Category:** Vaults\
**Created:** [10 March 2022 16:59 UTC](https://gov.yearn.fi/t/proposal-composable-yield-vaults/12348 "2022-03-10T16:59:19Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![HardyHarhar](https://avatars.discourse-cdn.com/v4/letter/h/87869e/32.png) [@HardyHarhar](https://gov.yearn.fi/u/HardyHarhar)\
**Post date:** [10 March 2022 16:59 UTC](https://gov.yearn.fi/t/proposal-composable-yield-vaults/12348/1 "2022-03-10T16:59:19Z")

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**ELI5:**  
• Create new vaults that provide flexibility with how the yield generated from current vaults is reinvested.  
• For instance, the Curve stETH vault yields a 5.10% APY. Instead of having the yield directed back into the current vault strategy, provide the flexibility for the yield to be deposited into a different vault, DAI for example. Depositor would receive yvDAI.  
• stETH \> Harvest Yield \> Convert to DAI \> Deposit in Dai vault \> Return yvDAI to depositor.  
• Above example can also be reversed. DAI \> yield \> stETH vault

**Why?:**  
• With the current structure of vaults, the assets you deposit are the assets you earn.  
• Offering the flexibility for yield to be returned in another form can draw in additional depositors and grow TVL.  
• Composable yield allows for better portfolio construction and risk management.  
• As the money lego ecosystem continues to develop, I believe a big unlock is the ability to redirect yield to different strategies. As vaults offered continued to grow, yield can be redirected for exposure without adjusting ones principle.

**Pro’s:**  
• Vault strategies are already in place.  
• Allow for depositor to dollar cost average into a position.  
• Allow for depositor to generate consistent stable income.  
• Potentially appealing for treasury management  
• Yearn TVL growth

**Con’s:**  
• Potential to draw assets from already established yearn vaults. While this doesn’t grow TVL, it does indicate that these asset holders value composable yield.  
• These vaults will likely have a higher gas impact (unsure)

Looking forward to feedback.

TG: @Hardy\_Har\_Har

-Not sure how to add a poll

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**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/yearn/original/2X/9/9ae7183c96201b2e9a60ad06d0d7664a3e90aeb0.png) [@system](https://gov.yearn.fi/u/system)\
**Post date:** [17 March 2022 17:00 UTC](https://gov.yearn.fi/t/proposal-composable-yield-vaults/12348/2 "2022-03-17T17:00:00Z")

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