With the rapid development of decentralized finance (DeFi), the eco system of YFI tokens is also constantly evolving. Recently, Yearn Finance launched the new Yearn Boosted Staker (YBS) system, designed specifically for yCRV users. This article will give you a detailed introduction to how YBS works and how to earn money in this new system.
Yearn Boosted Staker online time
Yearn Boosted Staker will be officially launched on June 6 at 00:00 UTC. For users wishing to migrate, the optimal migration period is a full week, starting at 00:00 UTC on June 6 and ending at 23:59 UTC on June 13.
Choice of earning income: In the new YBS system, users can choose the following two ways to earn income:
Stay in st-yCRV and YBS earnings compound automatically, no action required.
Stake directly to the new Yearn Boosted Staker (YBS) to earn income in the form of stablecoins (yield-based crvUSD).
Users can choose the option that best suits their needs, and we’ll dive into the specifics of both options below.
Option 1: Earn income through st-yCRV
This choice is very simple and completely passive. Users only need to deposit funds into the vault, and the system will automatically obtain and compound interest. Effectively, this vault/strategy is farming the same YBS as the direct stakers.
Suitable users: Users who want to increase their yCRV holdings.
For gas bill sensitive users (Yearn subsidizes gas bills for farming and compounding activities).
Option 2: Directly mortgage YBS
The new Yearn Boosted Staker (YBS) system is designed to incentivize long-term stakers, attracting users by offering higher rewards. For specific innovation mechanisms, please refer to official documents.
Suitable users: Users who want to receive rewards in the form of stable coins.
Users who don’t mind the additional gas costs associated with staking and claiming rewards.
Users who are expected to be long-term ecosystem players (able to exceed current market reward rates).
Rewards will be issued in the form of income-generating Yearn vault wrapped stablecoins, namely yvcrvUSD-2. Users can claim rewards at any time and will not lose any rewards even if they do not claim them.
Reward claiming mechanism: For safety reasons, the reward contract is designed to ignore the pledged amount in the first week. That is, quantities that have not yet reached the 1x boost will not count toward the reward. This means that after launch, until June 20, all users will not be eligible for the minimum 1x boost to claim rewards.
During the migration week (i.e. users who migrated before 00:00 UTC on June 13th), accrued rewards will be available for claim starting on June 20th. It is important to note that users who migrate after the migration period will miss out on this week’s double rewards.
YBS example
To better understand the YBS system, let's look at a specific example. Assume that Alice, Bob and Charlie each hold 10,000 yCRV.
Week 0: Migration Week (No Bonuses)
June 6: Migration Week begins.
June 7: Alice withdraws 10,000 yCRV from st-yCRV and stakes it to the new YBS contract, starting with a 0x boost.
June 10: Bob withdraws 10,000 yCRV and stakes it to the new YBS contract, starting with a 0x boost.
Week 1: Double Bonus Week
June 13: A new week begins with a 1x boost to Alice and Bob’s yCRV.
June 14: Charlie purchases 10,000 yCRV and stakes it into a new YBS contract, starting with a 0x boost.
Week 2: Standard Bonus Week
June 20: A new week begins.
in conclusion
The launch of the Yearn Boosted Staker (YBS) system provides yCRV users with more choices and flexibility. Whether they choose to keep it in st-yCRV for automatic compounding, or directly mortgage it to YBS to obtain stablecoin income, users can make the best choice based on their needs. As the DeFi ecosystem develops, the potential of YFI tokens is still worth looking forward to. Hopefully this article will help you better understand the YBS system and be successful in your future investments.