In the world of cryptocurrencies, investors are constantly looking for high-yielding opportunities. yVaults is an innovative savings account that provides users with the ideal option to store and grow their crypto assets. This article will delve into the working mechanism of yVaults, its fee structure and its importance in DeFi (decentralized finance).
What are yVaults?
yVaults can be thought of as a savings account for your crypto assets. After users deposit assets, yVaults uses a variety of strategies to find the highest returns available in DeFi. This mechanism not only improves the efficiency of capital utilization, but also provides users with higher return potential.
Fee Structure: yVaults’ fee structure is one of its core features. In line with the latest YIP-69 proposal, yVaults adopts a dynamic fee structure. The following is the current charging situation of yVaults:
Management fee: 0%
Performance Fee: 20%: On yVault’s user interface, earnings are displayed as a net annualized yield (APY), which means both fees and compounding returns are taken into account. Since harvesting does not occur at fixed intervals, returns are usually estimated based on historical data.
For Vault deployed by Vault Factory, the performance fee is 10%. This flexible fee structure allows users to better manage capital under different market scenarios.
Strategy and Management: yVaults can support up to 20 strategies, which provides greater flexibility for effectively managing capital in different market environments. Each strategy has a capital cap to avoid over-allocating funds to strategies that cannot further increase APY.
In the yVaults V2 version, the original concept of "controller" is replaced by "guardian" and "strategist". The two oversee strategy performance and have the authority to take steps to improve capital management or respond to critical situations.
Automated management
yVaults introduces the Keep3r network to realize automated Vault management. By automatically calling harvest() and earn(), the Keep3r robot network is able to complete these operations without human intervention. This not only reduces human work burden, but also reduces gas costs, maximizing user benefits.
Withdrawal Policy: In the V1 version of yVaults, users were required to pay a one-time fee when withdrawing money, but in the V2 version, this fee has been eliminated. Users can now manage their assets more freely without worrying about additional fees when withdrawing money.
EIP-4626 Compatibility: The latest version of yVaults is compatible with EIP-4626, allowing for tokenization strategies. This innovation provides users with more flexibility and choices, further lowering the threshold for participating in DeFi.
in conclusion
As the DeFi market continues to develop, yVaults has become a popular choice among investors with its unique features and flexible fee structure. Whether they are users who want to increase the value of their assets through high returns, or investors who want to flexibly manage capital in different market environments, yVaults can provide an ideal solution.
By understanding the operating mechanism and advantages of yVaults, users can better grasp the investment opportunities of crypto assets and make full use of the potential brought by DeFi. Whether you are a newbie or an experienced investor, yVaults is worth exploring and trying.