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Feat: update V2 and V3 vault docs #466
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0f037b5
update vaults data
rossgalloway 13740ff
Merge branch 'yearn:master' into feat--update-vaults-info
rossgalloway 21bc161
Update product info on vaults and user docs sidebar
rossgalloway bebed4c
move v2 vault factory page to dev docs
rossgalloway 237e0e2
update yvault overview page
rossgalloway e665309
fix sidebar links
rossgalloway aebca63
update v2 userdocs text and sidebar names
rossgalloway 0d61eaf
add yearn admonition type
rossgalloway a4e12b2
Merge branch 'feat--add-admonition' into feat--update-vaults-info
rossgalloway d222791
update vaults FAQ and admonition
rossgalloway 49a4840
add product banners
rossgalloway 58ba097
better detail element for FAQ
rossgalloway 35ba4b8
add diagram to v3 dev page
rossgalloway f7d50c9
remove Vault Tokens from sidebar (it is in faq)
rossgalloway 0ca6330
Merge branch 'master' into feat--update-vaults-info
rossgalloway cc40f8f
case natspec and add link to external resource
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Original file line number | Diff line number | Diff line change |
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# Overview | ||
# yVaults | ||
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## What are yVaults? | ||
:::yearn-info[WHAT IS A yVAULT ANYWAY?] | ||
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[yVaults](https://yearn.fi/vaults) are like savings accounts for your crypto assets. They accept your deposit, then route it through strategies which seek out the highest yield available in DeFi. | ||
Yearn Vaults are like crypto savings accounts in cyberspace. You deposit your assets, and Yearn's smart contracts put them to work within the DeFi ecosystem, returning the earned yield back to you. | ||
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However, unlike a bank account - none of this takes place behind closed doors (no offense to doors). Decentralized Finance uses public blockchains, meaning you are in control of your assets and can see where they are at all times. Nothing is hidden and everything is auditable by anyone, at any time. | ||
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## yVault Fee Structure | ||
With the advent of v3, Vaults can now be made out of a single strategy for your assets, or a collection of multiple strategies which balance your funds between them. Users now have more control over where they want their funds to go and a wider range of risk appetites. | ||
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**Performance Fee**: Deducted from yield earned every time a vault harvests a strategy. | ||
Go you! | ||
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**Management Fee**: Flat rate taken from vault deposits over a year. The fee is extracted by minting new shares of the vault, thereby diluting vault participants. This is done at the time of harvest, and calculated based on time since the previous harvest. | ||
::: | ||
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The old structure used before the changes brought by [YIP-69](https://gov.yearn.fi/t/yip-69-reduce-and-cap-fees-through-yrates/12588) was 20% performance fees and 2% management fees, but this has changed and vaults now have a dynamic fee structure. Single asset vaults have no management fee. Fee values for all yVaults can be checked in real-time at [yearn.watch](https://yearn.watch/) | ||
<PrettyLink>[Still Confused? Click here for an ELI-5 explainer](yvaults-faq#yvaults-eli-5)</PrettyLink> | ||
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*Example YFI yVault fee structure at the time of writing:* | ||
## yVault Types | ||
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| Fee Type | Value | | ||
|-----------------|-----| | ||
| Management Fee | 0% | | ||
| Performance Fee | 20% | | ||
Over the years, Yearn has developed 3 versions of the yVault products: v1, v2, and v3. Super creative, we know! | ||
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On the [yearn.fi](https://yearn.fi/) user interface, yield is displayed as net APY. This means that both fees and compounding returns are taken into consideration in the rates presented. Since harvests don't occur on a set basis, yield is usually estimated based on historical data. For more information, see [How to Understand yVault ROI](https://docs.yearn.fi/getting-started/guides/how-to-understand-yvault-roi) | ||
- [**v1 yVaults**](../../../developers/v1/introduction) are the OG vaults and are mostly phased out (*deprecated* in developer-speak). | ||
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- For vaults deployed by the vault [factory](https://docs.yearn.fi/getting-started/products/yvaults/vault-factory) the performance fee is 10% instead of 20%. | ||
- [**v2 yVaults**](./v2) are the reliable, workhorse vaults that you know and love. They started focused on the Curve ecosystem and are still used when creating vaults for Curve pools. | ||
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- [**v3 yVaults**](./v3) are the new cool vaults on the block. They are designed to interoperate using the ERC-4626 standard and have several new features to make them safer and easier to use and create. | ||
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## yVault Fee Structure | ||
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yVaults have 2 potential fees that can be charged on deposited funds: | ||
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**Performance Fee**: Deducted from yield earned every time a vault harvests a strategy. | ||
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**Management Fee**: Flat rate taken from vault deposits over a year. The fee is extracted by minting new shares of the vault, thereby diluting vault participants. This is done at the time of harvest, and calculated based on time since the previous harvest. | ||
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## v2 yVault Improvements | ||
Prior to [YIP-69](https://gov.yearn.fi/t/yip-69-reduce-and-cap-fees-through-yrates/12588), vaults had 20% performance fees and 2% management fees, but this has changed and yVaults now have a dynamic fee structure. | ||
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- **Up to 20 strategies per vault:** This will increase the flexibility to manage capital efficiently during different market scenarios. Each strategy has a capital cap. This is useful to avoid over-allocating funds to a strategy that cannot increase APY anymore. | ||
- **Strategist and Guardian are the new Controllers:** The Controller concept is not available in V2 yVaults and has been replaced by a Guardian and the Strategy creator \(strategist\). These 2 actors oversee strategy performance and are empowered to take action to improve capital management or act on critical situations. | ||
- **Automated vault housekeeping \(Keep3r network\):** `harvest()` and `earn()` calls are now automated through the Keep3r bots network. These 2 function calls are used to purchase new underlying collateral by selling the earned tokens while moving the profits back to the vault and later into strategies. The keep3r network takes the heavy lifting of doing these calls and running with the gas costs in exchange for keep3r tokens. This approach unloads humans from these housekeeping tasks. | ||
- **No Withdrawal Fee**: The one-time fee charged on balance upon withdrawal has been turned off for all vaults and only existed in the v1 iteration. | ||
Single asset vaults generally have no management fee. Fee values for all yVaults can be checked in real-time at [yearn.fi](https://yearn.fi/) | ||
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## v3 yVaults | ||
- On the [yearn.fi](https://yearn.fi/) user interface, yield is displayed as net APY. This means that both fees and compounding returns are taken into consideration in the rates presented. Since harvests don't occur on a set basis, yield is usually estimated based on historical data. For more information, see [How to Understand yVault ROI](../../guides/how-apy-works) | ||
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The newest version of yVaults are EIP-4626 compatible and allow for tokenized strategies, read more: https://docs.yearn.fi/getting-started/products/yvaults/v3 | ||
- For vaults deployed by the vault [factory](/developers/v2/vault-factory) the performance fee is 10% instead of 20%. |
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# yVaults v2 | ||
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## Overview | ||
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The second iteration of yVaults are auto-compounding contracts that allow depositors to earn and compound yield on deposited assets. These are still the trusty workhorse vaults for Curve, Velodrome, and Aerodrome LP positions. They allow multiple strategies and can be automatically harvested, but they have mostly been superseded by the [V3](./v3) architecture for single asset vaults and other more exotic asset types. They are not ERC-4626 compatible, nor as flexible as the newer V3 vaults. | ||
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 | ||
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## v2 yVault Improvements | ||
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- **Up to 20 strategies per vault:** This will increase the flexibility to manage capital efficiently during different market scenarios. Each strategy has a capital cap. This is useful to avoid over-allocating funds to a strategy that cannot increase APY anymore. | ||
- **Strategist and Guardian are the new Controllers:** The Controller concept is not available in V2 yVaults and has been replaced by a Guardian and the Strategy creator \(strategist\). These 2 actors oversee strategy performance and are empowered to take action to improve capital management or act on critical situations. | ||
- **Automated vault housekeeping \(Keep3r network\):** `harvest()` and `earn()` calls are now automated through the Keep3r bots network. These 2 function calls are used to purchase new underlying collateral by selling the earned tokens while moving the profits back to the vault and later into strategies. The keep3r network takes the heavy lifting of doing these calls and running with the gas costs in exchange for keep3r tokens. This approach unloads humans from these housekeeping tasks. | ||
- **No Withdrawal Fee**: The one-time fee charged on balance upon withdrawal has been turned off for all vaults and only existed in the v1 iteration. | ||
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## Read More | ||
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**V2 developer docs:** <PrettyLink>[https://docs.yearn.fi/developers/v2/getting-started](/developers/v2/getting-started)</PrettyLink> | ||
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**dApp:** <PrettyLink>https://yearn.fi/vaults</PrettyLink> | ||
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**Guides** <PrettyLink>[V2 Interface Guide](/getting-started/guides/using-yearn-v2)</PrettyLink> |
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