Just curious why staking rewards are paid in yCRV instead of yUSD? Seems like yUSD would be more beneficial to stakers. Is this something that would be worth putting together a proposal to change?
yCRV is effectively the same as USD. It is an LP share in the Y Curve pool.
Had this same thought today. Correct me if I am wrong, but If it was yUSD instead of yCRV, it would be earning the vault APY while awaiting being withdrawn by stakers? Given that most stakers allow a decent amount to accumulate before claiming (to offset gas fees), this seems quite beneficial indeed.
Also, assuming it could be withdrawn as yUSD also, then it would automatically be included in the wallet’s yVault balance as well (without needing to spend additional gas to deposit it to the vault)? I have also observed that at least a number of the larger stakers do claim their rewards frequently, and oftentimes convert the yCRV into yUSD by depositing to the yVault. This would save that step if I understand it correctly.
I am assuming though that there are some challenges to doing it this way. Like the accounting side of things perhaps. And the 0.5% withdrawal fee when converting yUSD. The additional APY for governance stakers may be worth figuring those out though.
I’m talking about yCRV vs yyCRV (yUSD)
I think it is more a status quo. When staking rewards initially started flowing to YFI holders in July it was yCRV and yUSD didn’t exist. There’s tons of tweaks, adjustments, optimizations, monitoring going on behind the scenes, and at this very moment some back-end processes haven’t gotten around to changing staking rewards. Just takes some time to update all the changes to the ecosystem. But it will likely have to be formalized it into a YIP.
Someone please put in a proposal and code to make this happen. yUSD is just better than yCRV for gov stakers.
Perhaps @banteg can confirm, but I think he mentioned somewhere that this is in the works already for when the governance rewards contract is updated.
This thread about gov overhaul has discussion about using yUSD for the staking rewards.