Aug 16 - FARMING CRV for 2.5x REWARDS

The revenue model just got a major upgrade... since yesterday.

It's hard to explain how big this is for $YFI but we'll try to anyway.

On August 28 the $CRV DAO is enabling vote locking to increase the CRV rewards on liquidity provided to Curve Finance.

The maximum boost of $CRV is 2.5x!!!

You can learn more about it here:

Obviously a 2.5x boost in $CRV distribution has massive implications for the yVAULT!!!

Thankfully our lord, savior, the people's champion Andre "The DeFi-ler" Cronje has already used that too good for mensa brain of his to come up with new strategies.

Let's review them now and discuss this overlooked aspect as to why $YFI ownership is so much more than just earning rewards.

Pre-CRV Rewards Distribution

From the forum:

yVault currently has 609,687 CRV vested with 1670 CRV linearly releasing each day. As this strategy is not codified there needs to be manual intervention. All manual intervention should be dictated by YFI holders.

The 609,687 $CRV vested since the creation of the yVAULT.

We need to decide what to do with the vested $CRV.

The manual intervention or change to the strategy needs to be dictated to by $YFI holders.

$YFI holders regardless of whether they have a position in the yVAULT or not, have voting rights determining the flow of this capital.

In our bull case for $YFI we posted:

Legacy players (funds, protocols, etc) who want to direct capital from YEARN yVAULTS, will need to own $YFI to be able to vote in governance.

YEARN Vaults as a funding mechanism completely flips the power dynamic upside down.

Oh my... here we are witness the first example of the power dynamic flipping upside down!L

Let's explain.

Andre presents three separate options:

Option 1: Create a new rewards contract that receives vested CRV daily, LP’s to the yCRV yVault can stake their yyCRV and receive additional CRV.

Option 2: Liquidate vested CRV daily and provide funds to treasury and dividends to YFI holders

These are boring and self-explanatory.

But option three...

Option 3: Use the CRV via YFI governance (giving CRV voting rights to YFI) as well as boost yVault CRV generation by 2.5x (greatly incentivizing deposits which further increase fees and dividends ~ essentially increasing daily rewards by 2.5x) - (this one is my personal bias)

oh my... oh baby...

Are you smiling? Are you jumping out of your pants with joy?

You should be.


Let's take it line for line.

Use the CRV via YFI governance (giving CRV voting rights to YFI)

By locking the $CRV into voting escrow, $YFI holders become a power player in CRV governance.

Instead of the VC's teaming up to dominate the DAO and rendering smaller holders ineffective, $YFI holders collaboratively become a whale.

We are all the YFI_DAO_WHALE.

Boost yVault CRV generation by 2.5x

You win this game by deploying capital smartly, effectively and efficiently.

When you can boost CRV generation by 2.5x AND increase the voting rights in the CRV DAO for $YFI holders, you do it.

In this paradigm it's mathematically impossible to even consider anything else.

We are playing a long-term game and we are playing for keeps.

Greatly incentivizing deposits which further increase fees and rewards

The second order effects of giving CRV voting rights to the YFI and boosting yVAULT CRV generation by 2.5x include:

  • More capital inflows (deposits)

    • Increase in fees + rewards

    • Higher yields, brings more capital

  • Increased demand + price for $YFI due to capital control (directing money flow)

These happen the moment this YIP is approved in the block.

Things will accelerate rapidly.

Better Than 2.5x Daily Rewards

We believe that giving $YFI holders pooling voting rights in the Curve DAO is significantly more important than the daily rewards.

This will will be the first time a truly decentralized autonomous organization has deployed capital to take a really big bet on something new... governance in another protocol.

$YFI holders will have governance as the YFI_DAO_WHALE, while earning 2.5x CRV in the yVAULT, all without forgetting where we came from... our humble farming roots.

Farming... what?

Soon an administration fee will be distributed to the Curve DAO.

So in effect by becoming the YFI_DAO_WHALE, we are going to be farming the admin fee of the Curve DAO and distributing the rewards back to the vault and back to $YFI holders (h/t @bambouclub)

It's a cycle where $YFI keeps winning, winning and winning.

Buy more and hold what you can. Do not sell for any reason. See you at $7500.

We are the power pool, we are making DeFi for everyone, and we will reap the rewards each step of the way.

All hail Andre "The DeFiler" Cronje.


IMPORTANT: yCRV is dead.... Long live $yUSD. (via @future_fund)

Next steps:

Read the YEARN + $YFI Revenue Model

Donate to our buy more $YFI fund: 0x41A3E688290EfF2bd10c160151c297A23B42953D