Everyone is so confused on the yield info shown on yearn vaults. Even supporters of YFI don’t fully get it.
Can we just show APR as typically shown by everyone else? People are going to find out that number anyway by going to places like https://stats.finance/yearn.
If not, can we then add an explanation on the website about how it is calculated? Maybe an explanation pops up when you hover over it?
The yield shown on the vaults page is the historical avg, but yah the UI needs to be updated to say that.
I know people are working on that and will deploy a website in the next days.
On another note I’m fairly confident that the data on the stats page is not entirely correct, since the increments that are being tracked are not in the final value of tokens but in the multiplication factor for the initial tokens, which is why it’s incorrect to apply compounding.
What stats page are you referring to?
while inside Yearn Vaults I am wondering whats the difference b/t EARN and VAULTS in YFI I see
USDC 9.73% interest rate in EARN and
USDC 25.3% ROI in VAULT…
why would you put USDC in EARN if you can get way more in VAULT ?
also in vault you put in USDC, but when withdraw you get yUSDC… what is yUSDC and is the intent to withdraw yUSDC and stake somewhere else?
thank you for elucidating!
For those tokens deposited in the y.curve.fi option under the Earn tab, you are looking at receiving interest on tokens individually; the lifetime interest received in your example USDC, is at 9.73% since inception.
(For a generalized view of APY at current point in time across various protocols, you can tab over to the APR tab)
While on the Vault tab, the concept of locking up USDC means that you are essentially pooling your stablecoins and earn a higher ROI. The strategy is deployed by a specific vault, and certain percentage of the pool is put to use, thus accruing the higher yield (since inception).
See vault strategies here: https://feel-the-yearn.app
To answer your other query on depositing plain USDC in the Earn tab, the token you would have received are yUSDC tokens.
Similarly, in the Vault tab, you would also deposit plain USDC, and receive yyUSDC (yVault tokens).
In both instance, to withdraw back to USDC, you need to redeem your yUSDC tokens or yyUSDC (yVault token).
On the other hand, this withdrawal action will exchange your yUSDC and yyUSDC (yVault pool shares) ie tracking your ownership of interest bearing USDC in the
y.curve.fi yEarn pools or the yVault pools back to your initial deposited USDC tokens.
I agree completely with this.
I admit that I don’t understand fully how the high yield are produced – but it seems that they are in part driven by the gov tokens like COMP thrown off by the various underlying protocols Yearn interacts with.
Because these gov tokens are hot and inflating at the moment also, the interest + transaction fees + gov tokens = a large % … but of course, the gov tokens will NOT forever inflate (and may crash) so this is not sustainable.
That’s my understanding – it could be wrong – but knowing EXACTLY how curve.fi/y LP earns 93.13% ROI would be great (i.e. “It’s 30% interest, 40% gov tokens, the rest are transaction fees”).
UPDATE: I’ve done some reading – it appears I’m wrong – it’s NOT ‘mostly gov tokens’ providing the yield – it’s almost ALL transaction fees. So the sustainability of yield is dependent upon the ‘velocity’ of the trading world continuing to accelerate (or at least remain the same).
Again: PLEASE correct me if I have this wrong.
where does one do the redemption? also when you have USDC in the vault, the balance will auto-update/ continue to grow according to the interest rate until you withdraw and redeem?
thank you sers
By clicking on withdraw, you will redeem those yUSDC or yyUSDC in your wallet, in exchange for plain USDC returned back to you.
The balance of yUSDC or yyUSDC in your wallet will not grow, as they are only representations of your shares of the respective pools.
Rather during the course of deposited USDC, the pool tokens will have more value, since the underlying USDC also has increased with time. As you are holding rightful shares of the interest-bearing pools yUSDC or yyUSDC.
Closed since inactive. Feel free to reopen if this topic is still relevant.