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Yearn Finance v2 Vaults Surpass v1 Value in Two Months

2 mins
Updated by Kyle Baird
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In Brief

  • Yearn v2 vaults have overtaken their predecessors .
  • DAI and YFI vaults have the most liquidity.
  • YFI price up 3% over the past 24 hours.
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Popular decentralized finance yield aggregator, Yearn Finance, has seen collateral levels for its second-generation vaults surge in recent weeks.

The latest ‘State of the Vaults’ update for Yearn Finance was posted on March 21. It reveals that collateral has surged on the platform for its version two vaults which were launched in mid-January 2021.

The findings were posted by core developer “banteg” on March 18. They show the TVL for both has increased in 2021, but v2 now has more.

“Despite launching in early 2021, total-value-locked (TVL) for v2 vaults has now surpassed TVL for v1 vaults. No ceiling in sight.”

V2 Vaults Growing

The primary difference is that v2 yVaults are able to employ multiple strategies per vault. Up to 20 simultaneous strategies are possible, unlike v1 vaults that are only able to employ one strategy per vault.

This leads to greater yields for farmers which has, in turn, catalyzed the liquidity injection over the past couple of months. One of the critical components of Yearn’s infrastructure includes a collaborative relationship with Curve Finance.

Several of the vaults provide liquidity into Curve pools and stake the liquidity provider (LP) tokens into the respective pools, earning CRV rewards in return.

Yearn locks 10% of all CRV rewards earned into the yveCRV-DAO vault. This vault, known as the “Backscratcher” launched in November 2020 to obtain an additional amount of CRV.

At the time of press, the DAI v2 vault had the most liquidity with $94 million and an annual percentage yield (APY) of 14.5%. The YFI v2 vault was a close second with $92.5 million in collateral but a far greater yield of 37.6% APY.

Even the previously failed yETH vault was offering a return of 8.78% per year. However, liquidity was a little lower with just $46 million invested in the pool.

There are now ten v2 vaults in total compared to 34 v1 vaults. TVL for the entire platform is around $500 million according to DappRadar. DeFi Pulse reports the figure at around half of that.

YFI Price Update

Yearn’s native token YFI has made 3% on the day in a climb to $35,800. Over the past week, prices have been relatively flat. However, YFI is down 21% over the past 30 days.

YFI hit an all-time high of $47,000 on Feb. 14 and has been in a steady ascent since November 2020. There is a total supply of 36,666 tokens giving it a current market cap of $1.29 billion according to CoinGecko.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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