yCRV is IOU token from my investment in Y curve pool in Curve.fi. To withdraw my investment from Curve.fi, I have to burn yCRV token.
Say I invested $1000 and received 952.38yCRV (as 1 yCRV = $1.05 ). So after some time when I burn 952.38 yCRV tokens I will receive 952.38*1.05 USD. ?
What derives the price of yCRV?
“No, yCRV is not worth $1 and no it is NOT a stablecoin. You can think of yCRV as an index of yield bearing stablecoins (yDAI+yUSDC+yUSDT+yTUSD) that also generates yield (trading fees from the Curve Y pool) as well. Therefore the price of yCRV is always increasing.”
According to above link if people starts withdrawing from Curve Y Pool. Will yCRV price in USD starts decreasing? Will my initial investment of $1000 will worth less?