Yearn Finance Newsletter #10

Week Ending November 8th, 2020

Welcome to the 10th edition of the Yearn Finance Newsletter. Our aim with this newsletter is to keep the Yearn and the wider crypto community informed of latest news, including product launches, governance changes, and ecosystem updates. If you’re interested in learning more about Yearn Finance, follow our official Twitter and Medium accounts.

Summary

  • Two Active Votes on Snapshot 

  • New veCRV “Backscratcher” is Live

  • Testing for Several New yVaults

  • Audit Completed by MixBytes

  • Winner of the yCover Competition 

  • Yearn State of the Vaults

  • Governance Updates (YIPs)

  • Ecosystem News

  • Resources

Two Active Votes on Snapshot

v2 yVault Fee Structure

A new fee structure for Yearn’s vaults is being voted on by YFI holders via Snapshot. This vote is binding and will change the fees for yVaults in the upcoming v2 release. 

The proposed fee structure is as follows:

  • Remove withdrawal fees for yVaults

  • Introduce a 2% management fee assessed on total assets held in the yVaults (AUM)

  • 20% performance fee on profits 

Please note that the entire management fee (2%) will be earned by Yearn governance. The performance fee (20% of profits) will be split between governance (19.5%) and the Strategist (0.5%), respectively.

The current fee structure is as follows:

  • 0.5% withdrawal fee upon exiting each yVault

  • 5% fee on subsidized gas costs (harvest() calls)

    • 90% of this fee goes to governance

    • 10% of this fee goes to the yVault Strategist

You can view the discussion of this proposal on the governance forum here, and you can vote on this proposal here. The voting period is from November 7th to November 10th. 

Claim 8 YFI From Treasury

Another vote is live on Snapshot related to claiming 8 YFI currently held in the Treasury vault. There has been discussion on the governance forum about distributing YFI to contributors of the Yearn ecosystem. These discussions are still preliminary, but the 8 YFI would be used to seed such future contributions, which will be determined at a later date. 

You can vote on this proposal here

New veCRV “Backscratcher” is Live

We have released a new product that enables users to deposit CRV, and in exchange receive a portion of the DAO admin fees from Curve Finance. The CRV will be locked forever, but in return users will earn liquidity provider (LP) tokens from the 3pool on Curve Finance (shown below).

The user can then withdraw from this pool by burning the LP tokens and receive either DAI, USDC, or USDT in return. Curve’s DAO admin fees have yet to be paid out, but distribution is expected to begin in the near future. 

This new product also benefits the Yearn ecosystem as the deposited CRV will be locked as veCRV and boost the returns for yVaults that utilize Curve liquidity gauges. The UI to this new product can be accessed here. Additional details about the “Backscratcher” can be found in our State of the Vaults

Testing for Several New yVaults

Several new vaults have launched this week and are undergoing testing in production. These vaults include the yHegic, yDAI, and a new yETH vault. The new yDAI vault is limited to a 100k DAI capacity during the testing phase. The new yETH vault is limited to 250 ETH. The yHegic vault is limited to 888,888 Hegic. These vaults are testing new features as part of our upcoming v2 yVault release.

We would like to caution users that these vaults are experimental, have not been audited, and may contain bugs that result in total loss of user funds. Do not deposit into these experimental vaults unless you understand and accept these risks. 

Audit Completed by MixBytes

MixBytes was recently engaged to conduct an audit of Yearn Finance’s v1 smart contracts, including yCover. This audit report was published on November 5th, 2020 and contained no critical or major issues. You can read the full scope of their audit, including smart contracts examined here

Reminder: Despite a successful audit vulnerabilities may still exist that adversely affect user funds. Please only deposit funds to our contracts if you understand and accept these risks. 

Winner of the yCover Competition 

We recently hosted a competition to select new artwork that will be the face of yCover NFTs. Voting is complete and we are proud to announce that Toxicpoeth has won the competition and received 2,000 yUSD from Yearn. 

Congratulations to Toxicpoeth and we would like to thank all the contributors. Displayed below is the artwork that won the competition.

Yearn State of the Vaults

You can read our weekly synopsis regarding Yearn’s yVaults, including current strategies and upcoming changes here

Governance Updates (YIPs)

You can read our weekly governance roundup discussing newly proposed, on-going, or passed governance proposals here

Ecosystem News

Yearn is ready to integrate Keep3r into its ecosystem

yVaults are now integrated into Frontier’s interface 

New v2 yVaults strategy template release

Yearn community continues to grow in size

In-depth look at Yearn Finance (video)

What is Yearn Finance? 

Maker’s Executive Vote to add YFI as collateral is live

Paradigm Fund interview with Andre Cronje

Yearn now has a total of 44 strategies across 13 different vaults

Multiple strategy testing as part of v2 yVaults is underway

Resources

YCosystem: Aggregator of Yearn community links

Yearn Docs

Y.finance: Development Yearn frontend

Yearn Governance Forum

Yearn Snapshot Vote Signaling

yGov Finance: Yearn on-chain voting

yGov Rocks: Alternative voting and claiming portal

Learn Yearn: Yearn education and explainers

Yield Farming Info: Yearn Vault APYs

Feel the Yearn: Yearn Vault APYs, wallet holdings, and earnings

Stats.Finance: Yearn Vault APYs, value locked in yVaults and Strategies

yVault ROI: yVaults ROI for any wallet address

Yearn ROI: Estimate future yVault ROI

DeFi Marketcap: Yearn Vault and token marketcaps

Add YFI and yUSD to MetaMask

Recycler: Zap multiple stablecoins into yUSD Vault

yVault explainer graphics by DeFinn

We invite developers to conceive and propose any new yVault strategies or potential product offerings to the governance forum (https://gov.yearn.finance). Introduce strategies and get paid for your work! We are also always looking for security auditors to help us identify vulnerabilities and exploits. Please reach out to us if you are interested in assisting our security efforts or would like to discuss any business collaborations at franklinyfi@yearn.finance or info@yearn.finance