Permissionless DeFi gets an upgrade with newly launched yearn "Vault Factory"


By Nerly Shammah Jan 11, 2023


Yearn.finance  DeFi


Yearn, the decentralized digital product suite helping individuals and organisations such as DAOs to earn yield on digital assets recently deployed a new permissionless smart contract enabling just about anyone to create a yearn Vault and earn on the go. According to the announcement on twitter, the permissionless vault factory enables anyone to deploy an auto-compounding yVault for any curve pool with an active liquidity gauge. 


Soon to be available to Balancer LP tokens, the Vault Factory is said to be a massive step forward in automation, geared to enable yearn finance to significantly reduce cost of operations. All vaults deployed using this new method are reported to utilize a fee structure of 0% management fee which was previously 2% and a 10% performance fee, previously 20% indicating a massive drop in overall expenses.



As a way of ensuring that each vault deployed on the Vault Factory is fully packed and customized to be truly flexible, permissionless and profitable, all factory deployed yVaults for Curve LP tokens contain up to three ready-made yield strategies including:


StrategyCurveBoostedFactory which leverages Yearn's veCRV balance (currently 45.1m) to give users the maximum 2.5x boost on their CRV rewards, StrategyConvexFactory supplies any additional Curve LP tokens (beyond which would receive the maximum 2.5x boost via the Curve strategy) to Convex Finance to earn CRV rewards (boosted by Convex's veCRV balance) and CVX rewards and StrategyConvexFraxFactory will only be added to the vault if the Curve LP token of the vault can be staked in Convex for Frax (currently available for over 20 Curve LPs).


This ConvexFrax strategy will be used instead of the standard Convex strategy to earn additional FXS rewards (on top of the standard CRV and CVX rewards). 


These yVaults are seamlessly integrated in the UI, meaning that it is as reported easy to deploy right from the UI. The simplicity of the vaults and its cultured structures are truly user friendly, performance fees for example, for every type of yVault go straight to Yearn treasury (ychad.eth) and are calculated only on top of harvest profits.


yearn.finance, the Ethereum-based digital product suite with a market cap of $190 million looks to capture the crypto ecosystem with its savings-like DeFi products in-demand of a painful bear market so far. 


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