Staked Yearn CRV VaultPrice

(ST-YCRV)

st-yCRV is a yVault within the Yearn Finance ecosystem, representing Yearn's updated veCRV wrapper system. It aims to tokenize Yearn's veCRV position and distribute revenue and benefits. Users depositing into the st-yCRV yVault receive admin fees and bribes derived from the locked CRV. Essentially, it allows users to access the advantages of locked CRV without directly managing the locking process, as it's designed to provide an automated, compounding strategy for Curve Finance rewards. It's also referred to as "yvyCRV" due to its auto-compounding nature.

st-yCRV is one of the activated positions within Yearn's veCRV wrapper system, where yCRV serves as the base token. Users first obtain yCRV, which then allows them to choose a specific strategy by depositing into vaults like st-yCRV. While yCRV is the underlying token representing Yearn's locked CRV, st-yCRV is a specific vault that offers a particular benefit: automatic yield generation and compounding. The terms "yvyCRV" and "st-yCRV" refer to this auto-compounding yCRV vault, distinguishing it from other yCRV-based positions that might offer different utilities like voting power.

The st-yCRV yVault operates an automated strategy to generate yield. It systematically handles the staking, claiming, swapping, and reinvesting of rewards derived from its underlying assets. This continuous process ensures that the yield automatically accrues and compounds directly back into the vault. This design eliminates the need for manual intervention by the user to manage their rewards, providing a hands-off approach to maximizing returns from the wrapped veCRV position. A performance fee is applied to this generated yield, contributing to the Yearn treasury.

When users deposit yCRV into the st-yCRV vault, a 10% performance fee is applied to the yield generated. This fee is collected and sent to the Yearn treasury on a weekly basis, contributing to the protocol's sustainability. Importantly, the Yearn CRV vault itself does not impose any deposit or withdrawal fees directly on users when they move their assets in or out. The primary fee consideration for st-yCRV users is this performance fee on the earned yield, which is standard for many Yearn vaults to cover operational costs and support ongoing development.

Holding st-yCRV involves several risks, as it interacts with underlying protocols and smart contracts. Key risks include smart contract vulnerabilities, which are present in any decentralized application, and potential market risks. These market risks can lead to scenarios like liquidation of leveraged strategies if sudden price drops occur, impacting the value of the vault's assets. Furthermore, governance risks exist, pertaining to how decisions are made within the Yearn and Curve ecosystems. Yearn actively works to minimize these risks through robust security practices and audits, but it openly states that complete elimination of all risks is not possible in the Web3 space.

For the Staked Yearn CRV Vault and the broader yCRV system, the Yearn governance multisig currently retains the exclusive ability to cast votes in the Curve DAO. This means that individual yCRV token holders, including those with st-yCRV, do not directly control the voting power for the underlying veCRV. There are no immediate plans to delegate these voting rights directly to yCRV token holders. However, the system is designed with potential future upgrades in mind, which could allow for the distribution of these voting rights to holders should the community and governance decide to implement such a change.