Add vault that accepts yveCRV token as underlying and uses the weekly profits from the yveCRV vault to increase its allocation of yveCRV.
The yveCRV vault accepts CRV and locks them indefinitely into the Curve DAO in return for weekly rewards.
Unlike most other vaults, the yveCRV vault doesn’t compound its earnings by re-investing (which makes sense as otherwise somebody who deposits would never see any money back as it would always be locked).
Currently, if someone wants to re-invest the proceeds from the yveCRV vault, they must claim the weekly rewards and invest them again into the vault. These re-investments can be aggregated to reduce tx costs and they can be automated.
The yyveCRV vault accepts yveCRV deposits. Users can withdraw yveCRV from this vault at any time.
Depending on what implementation is most cost efficient, we check when new Curve rewards have been distributed on deposit/withdrawal of the vault (directly interacting with Curve’s reward contract) or we use a keeper cron job.
When weekly rewards are distributed, we claim and sell the rewards and either:
- Buy CRV in the open market and deposit into yveCRV vault
- Buy yveCRV tokens in the open market
Depending on the price of CRV and yveCRV (we’ll choose the option which provides us is with the maximum amount of yveCRV).
- Sounds good
- Sounds bad