Popular DeFi protocol Yearn Finance has launched a new product, a profit generator called yvBOOST. Part of the Vault family, this product complements the “Backscratcher” Vault and allows users to earn and grow rewards in the curve-based token 3CRV.
“Backscratcher” offers rewards in Curve’s native token CRV, an Ethereum exchange liquidity pool. Vault simplifies the process of earning additional rewards from Curve by locking up a portion of CRV for users.
This will allow all Vault participants to benefit from the option to increase their APY by locking in additional CRV. We also receive Curve DAO management fees. Our latest offering, yvBOOST, uses Curve’s native token to provide compounded long-term exposure.
With yvBOOST, 3Crv earned from the yveCRV storage are sold to CRV and deposited back into the storage, increasing the yveCRV balance in yvBOOST (…). At the same time, over time you increase the boost to all your Yearn vaults through the Curve Finance strategy.
Yearn Finance has launched the yvBOOST-ETH pool on decentralized exchange SushiSwap to generate liquidity for the new vault, as revealed by the team behind the protocol. This pool offers higher returns on SUSHI-based rewards.
As a bonus, the protocol launched two additional vaults: crvFRAX and crvLUSD. These products have a 2% management fee and a 20% performance fee, but users can claim tokens at no additional cost.
Yearn Finance 2nd highest return in DeFi
According to Yearn Finance’s first quarter earnings report, the protocol’s main driver of earnings before interest, taxes, depreciation, and amortization (EBITDA), a metric used to measure financial performance, is yVault. The report indicates:
YFI vaults saw a significant increase in revenue in March as depositors migrated to v2 vaults, encouraging higher TVLs to generate more revenue.
However, sovereign wealth-based products are becoming an important source of revenue. The Yearn Finance team expects this trend to continue in the coming quarters. Messari researcher Ryan Watkins told Yearn Finance’s Q1: report:
Based on last month’s annual revenue, Yearn’s revenue was more than $50 million. Adding treasury agricultural activity and assuming it is constant from March is $60mm+. All organic. There are no token incentives. This also makes Yearn the second highest-grossing protocol in DeFi after MakerDAO, adjusted for token incentives.
At the same time, Yearn Finance’s governance token YFI made significant gains on both low and high periods. The 30-day chart has the highest increase at 37.2% at the time of writing, and the 7-day chart follows closely behind at 35.7%. As of this writing, YFI is trading up 10.7% at $53.983 on the daily chart.
