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Vault Factory

Yearn's brand new "Vault Factory" allows anyone to permissionlessly deploy an official Yearn Vault with ready-made yield strategies.

The easiest way to get started using the factory is through the User Interface:

The current version of the Vault Factory works with the following:

The Vault Factory is a massive step forward in automation. We're significantly reducing our operational costs for all vaults deployed with this new method. Here's the fee structure for them:

  • 0% management fee (previously 2%)
  • 10% performance fee (previously 20%)

Performance fees for every type of yVault go straight to Yearn treasury (treasury.ychad.eth) and are calculated only on top of harvest profits. The current fee structure for each yVault can be seen directly on the new yearn.finance website by clicking on the vault.

Only one factory vault can be live for each token, so the Vault Factory will only deploy a new yVault if there is no vault for that token already deployed (excluding "legacy" vaults, though factory versions of these must be deployed from one of Yearn's multisigs).

Curve LP Tokens

The first Vault Factory deployed live on Ethereum is the Curve LP Token Vault Factory. This factory allows users to deploy yVaults for any Curve LP token that represents a Curve pool with an active gauge (allowing it to receive CRV emissions).

Strategies

Factory-deployed yVaults for Curve LP tokens contain up to three ready-made yield strategies:

  1. StrategyCurveBoostedFactory
  2. StrategyConvexFactory
  3. StrategyConvexFraxFactory

StrategyCurveBoostedFactory uses Yearn's veCRV balance (currently 47.6m) 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.

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).

In all three strategies, any earned tokens are regularly claimed, sold for more of the underlying Curve LP token, and then deposited back into the strategy to compound the yield.

Harvests

With the introduction of factory vaults, there was one subtle but important modification made in the way harvests work which allows them to be performed permissionlessly (i.e. by anybody willing to pay transaction costs for it). In traditional strategies, token swap logic is hardcoded into the strategy itself which means that a harvest call atomically performs debt rebalances and swaps into realized profit in a single transaction.

Now, with factory strategies, the swap logic is decoupled from the strategy and is performed in a separate transaction from the harvest. Swap transactions must remain permissioned in order to stay safe from MEV attacks. But as soon as swaps are complete, anybody can call harvest to recognize the profit that the swap created and airdropped into the strategy. Since harvest calls also invest tokens from the vault into the strategy, sometimes it may make sense to call harvest on a strategy even if there is no profit yet available from a prior swap. While harvests will be permissionless on this specific subset of vaults, Yearn will continue to use standard keeper automation to call harvests even if nobody else does.

Anyone can call harvest via the harvestStrategy() function on the keeper attached to the vault's strategies. To find this address simple go to the strategy on a contract explorer such as etherscan, and it is listed under keeper(). Then in that keeper's harvestStrategy() simply put in the strategy address which you would like to call harvest on, and click write.

Determine Accumulated Rewards

This section will help you know how much rewards have accumulated, but calling harvest will not recognize profits unless they are sitting in the strategy's contract address.

Curve Strategy

For curve strategies, you can view how much rewards have accumulated for that vault by using Curve.Fi's dashboard and putting in Yearn's Curve Voter Proxy address 0xF147b8125d2ef93FB6965Db97D6746952a133934 (curve-voter.ychad.eth). This will show you the dollar amount accumulated in the strategy for all factory vaults.

Convex and Convex Frax Strategies

For Convex and Convex Frax you can view how much rewards have accumulated in USD by viewing claimableProfitInUsdc() on the strategy under the Read Contract tab.

Contracts

The CurveGlobal contract provides a few main functions:

  • allDeployedVaults(): returns an array of all the deployed vaults.
  • numVaults(): returns the number of vaults deployed.
  • canCreateVaultPermissionlessly(): takes in an address for a gauge and returns a boolean that indicates whether a vault can be created permissionlessly.
  • createNewVaultsAndStrategies(): takes in an address for a gauge and a boolean that determines whether duplicate vaults are allowed, and creates a new vault and strategy.
  • latestDefaultOrAutomatedVaultFromGauge(): takes in an address for a gauge and returns the latest default or automated vault from that gauge.

Create with UI

Follow these steps to create a new vault with the UI:

  1. Make sure your wallet is connected
  1. Chose a token to create a vault for
  1. Review details and click "Create Vault"
  1. Sign the transaction and the vault will be created

Create from Contract

  1. Open the contract at etherscan: 0x21b1FC8A52f179757bf555346130bF27c0C2A17A

  2. Call canCreateVaultPermissionlessly() function to make sure that a vault does not already exist for the gauge you want to create

  1. Call createNewVaultsAndStrategies() to create a new permissionless vault.
  1. Now your new Yearn Vault will be deployed and you can sit back while it auto-compounds your rewards into more of your Curve lp position.
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