Yearn Finance Newsletter #19

Week Ending January 24th, 2021

Welcome to the 19th 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.


  • Yearn v2 Has Launched

  • Proposal to Mint Additional YFI Voting Expected this Week

  • BABY: Buyback & Build Yearn Proposal Has Passed

  • Two New PowerPool Indices

  • Yearn State of the Vaults

  • Partnership Roundup

  • Governance Roundup

  • Ecosystem News

Yearn v2 Has Launched

We are pleased to announce that Yearn v2 has formally launched. This launch includes our v2 yVaults and three are currently live: DAI, USDC, & HEGIC. Our v2 launch has coincided with an update to our user interface, which you can access here

Our new v2 yVaults come with a new fee structure: 2% management fees (AUM) and a 20% performance fee for profits earned by the yVault. These yVaults have no withdrawal fees, which contrasted with our v1 yVault fee structure that included a 0.5% withdrawal fee and a 0.5% subsidized gas fee. 

Additional v2 yVaults will be launched in the near future, and we will be sure to inform the community when more vaults are launched with no deposit caps. You can still access v1 and the respective yVaults using this link

Proposal to Mint Additional YFI Voting Expected This Week

Yearn governance and community members have been deliberating about minting 6,666 additional YFI to be allocated to contributors under a vesting schedule as well as  the Yearn Treasury. 2,222 (1/3rd) of the amount minted will be vested to current contributors, and the remaining 4,444 (2/3rds) reserved for future contributors, potential liquidity mining programs, growth initiatives, dispersed to YFI stakers in a new security module, merger & acquisition costs, or Yearn ecosystem incentives. 

This proposal is anticipated to be formally launched on Snapshot tomorrow, including a full description of the proposal. Voting will take place for 5 days and will be binding upon conclusion. Official announcements regarding the commencement and conclusion of this vote will be communicated via our official Twitter account. 

You can read the thread on our governance forum regarding this proposal here

BABY: Buyback & Build Yearn Proposal Has Passed

The BABY: Buyback & Build Yearn YIP has formally passed with 99.4% of the eligible vote in favor of the proposal. This YIP ceases rewards to YFI staked in the governance contract, and instead routes protocol earnings to Yearn’s treasury. Earnings are then used to buy back YFI in the open market and utilized as incentives for Yearn contributors or other growth initiatives intended to benefit the Yearn ecosystem. 

This YIP is now binding, and you can read the full description here

Two New PowerPool Indices 

PowerPool governance has approved two new indices: the Lazy Ape & ASSY. The Lazy Ape is an index of several Yearn yVault liquidity provider tokens. These liquidity pool tokens consist of the Compound, 3Pool, mUSD, GUSD, Y Pool, and BUSD yVaults. The intention of this index is to smooth the APY across these respective dollar-based yVaults and create a liquidity sink for these tokens and become the largest exchange pool. PowerPool governance has approved this index, but it has not yet formally launched. 

The ASSY index has been launched, which includes AAVE, SUSHI, SNX, & YFI. Liquidity mining rewards for the ASSY in the form of CVP, the PowerPool governance token, has also commenced. You can deposit funds into the ASSY index by using this link

Yearn State of the Vaults

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

Partnership Roundup 

You can read our weekly partnership roundup discussing updates involving partners in the Yearn ecosystem here

Governance Roundup

You can read our most recent bi-weekly governance roundup discussing potential YIPs or ones actively being voted upon here.

Ecosystem News

Overview of new v2 yVault fee structure

St. Ether v2 yVault approved

The 3 live v2 yVaults announcement

Idle Finance yVault under testing

yVaults are intended to be the best passive risk-adjusted returns in DeFi

ASSY index announcement

Yearn has added $550,000 in KP3R/ETH liquidity to Sushiswap

Olaf Wee-Carlson of Polychain Capital is supportive of minting addition YFI integrated ZAPs for our 3 newly launched yVaults

El Calfos yVault in production

Yearn v2 UI repo is now on GitHub

PowerPool Lazy Ape governance proposal