Decentralized yield protocol Yearn.finance said in a Jan. 9 tweet that all users can now create sophisticated Permissionless Vault Factories on its platform. The current version of Vault Factory works with stablecoin-swapping platform Curve Finance and its liquidity provider (LP) tokens and features three premade yield strategies.
“Our new Permissionless Vault Factory lets anyone deploy an auto-compounding yVault for any Curve pool with an active liquidity gauge. Yes, anyone. Factory-deployed vaults have no management fees and a flat 10% performance fee. Nice!”
As told by Yearn.finance, the first, dubbed “Boosted Factory,” uses Yearn’s vote-escrowed CRV balance of 45.1 million to give users a maximum boost of 2.5x on CRV rewards. The second, “Convex Factory,” supplies additional CRV LP tokens beyond the maximum to the decentralized platform Convex Finance to earn CRV and CVX rewards. Finally, “Convex Frax Factory” enables users to access rewards on the Frax Share algorithmic stablecoin platform.
“In all three strategies, any earned tokens are regularly claimed, sold for more of the underlying Curve LP token, and then deposited back into the strategy to compound the yield.”
Yearn.finance stated that the Vault Factory represents a “massive” step forward in automation that allows the firm to reduce its cost of operations. All vaults deployed using the new method will incur a management fee of 0% and a performance fee of 10%. Previously, management and performance fees were 2% and 20%, respectively. Performance fees go to the Yearn treasury and are calculated on top of profits. In addition, the deposit and withdrawal fees are also set at 0% for the new self-created vaults, although gas fees are still incurred during interactions.
Permissionless finance just got permissionless-er.
How much bear marketing building can we fit into one video? Let’s find out anon, try not to blink… pic.twitter.com/vYj7DcRMBo
– yearn (@iearnfinance) January 9, 2023