YOP Vault Strategies: Deep Dive and Announcement!

We’re happy to announce the launch of our latest Dune Dashboard covering the Vault strategies. With the launch of this new dashboard — we use this article go over our Vaults, the strategies within and their performance to date. The goal of this it to increase transparency with our community by sharing how we generate yield and monitor our risk.

Dashboard Walkthrough

You can find the new Strategies Dune Dashboard at: https://dune.com/yopfi/yop-strategies

For each of the YOP Vaults there is the following information:

- Strategy List: The list of strategies that the Vault has allocated to

- Pool Balances: Visualises the token exposures that the strategies have

- Total Tokens in Vault: Total amount of tokens currently under management of Vault

- Allocated Tokens: Number of tokens allocated to strategies (earning yield)

- Unallocated Tokens: Number of tokens unallocated (to service withdrawals without having to unwind strategy positions). Changes based on market conditions.

- Days Since Last Harvest: Last time profits were claimed and distributed to Vault

- Total Profit Earned ($): Total profits earned from all harvests, denominated in $

- Total Profit Earned (Token): Total profits earned from all harvests, denominated in native Vault token

Vault Strategies Performance Review

In the following there is an overview of the strategies that each Vault has/had an exposure to — and a performance review of each one. A “realised” Base APY is also shared. Note that the figures below do not account for any YOP Rewards that have been earned.

USDC Vault:

Strategy 1 (discontinued): Curve + Convex USDN Pool

- Strategy Entry Date: 22/02/2022

- Strategy Exit Date: 01/04/2022 (see here for reason for exit)

- Total Tokens Allocated: 47,500 USDC

- Total Profits: 400.47 + 180.15 = 580.62 USDC

- Realised Base APY: 11.84%

Strategy 2 (live): Curve + Convex FRAX Pool

- Strategy Entry Date: 16/05/2022

- Strategy Exit Date: Live

- Total Tokens Allocated: 61,202 + 50,671 + 27,319 + 6,664 = 145,842 USDC

- Total Profits: 180.17 + 588.61 + 503.63 = 1272.42 USDC

- Realised Base APY: 3.59%

USDT Vault:

Strategy 1 (live): Curve + Convex FRAX Pool

- Strategy Entry Date: 16/05/2022

- Strategy Exit Date: Live

- Total Tokens Allocated: 62,148 + 30,201 + 12,440 + 11,102 = 115,891 USDT

- Total Profits: 184.71 + 485.10 + 378.46 = 1048.27 USDT

- Realised Base APY: 3.59%

DAI Vault:

Strategy 1 (live): Curve + Convex FRAX Pool

- Strategy Entry Date: 16/05/2022

- Strategy Exit Date: Live

- Total Tokens Allocated: 66,998 + 56,019 + 24,209 + 9,794 = 157,010 DAI

- Total Profits: 198.31 + 648.89 + 532.64 = 1349.84 DAI

- Realised Base APY: 3.59%

BTC Vault:

Strategy 1 (discontinued): Curve + Convex oBTC Pool

- Strategy Entry Date: 11/04/2022

- Strategy Exit Date: 19/05/2022

- Total Tokens Allocated: 0.912 BTC

- Total Profits: 0.0014 BTC

- Realised Base APY: 1.47%

Strategy 2 (live): Curve + Convex sBTC Pool

- Strategy Entry Date: 19/05/2022

- Strategy Exit Date: Live

- Total Tokens Allocated: 5.079 + 1.209 + 0.323 + 0.305 = 6.916 BTC

- Total Profits: 0.00389 + 0.0215 + 0.0172 = 0.04259 BTC

- Realised Base APY: 2.1%

ETH Vault:

Strategy 1 (live): Curve + Convex stETH Pool (Entry @ 1 stETH = 1 ETH)

- Strategy Entry Date: 16/03/2022

- Strategy Exit Date: Live

- Total Tokens Allocated: 15.96 ETH

- Total Profits: Strategy not yet harvested (see here for reason)

- Realised Base APY: n/a

Strategy 2 (live): Curve + Convex stETH Pool (Entry @ 1stETH = 0.98 ETH)

- Strategy Entry Date: 19/05/2022

- Strategy Exit Date: Live

- Total Tokens Allocated: 65.44 ETH

- Total Profits: Strategy not yet harvested (see here for reason)

- Realised Base APY: n/a

Active Risk Monitoring System

In the following we describe the systems we have in place to make sure that your funds are safe. These have been integral in navigating the past few months of volatility in the markets.

Key Risks

As you may have picked up from above — we currently only employ liquidity provision strategies, and there are some unique risks that must be considered when using these:

- Smart Contract Risk: Looks at the likelihood that a smart contract is exploited and cause a loss of funds. Super low risk in established protocols such as Curve + Convex.

- Asset-de pegging: This is a loss that can be incurred if the value of any assets in a pool start to decrease (like we saw with UST and USDN).

- Impermanent Loss: This is the loss incurred as the balance of assets in the pool change (similar to above) — but only applicable if assets within a pool are not worth the same.

Factors we Monitor

In order to ensure we can spot any of the risks above we have an active risk monitoring system — where we monitor key factors and take appropriate actions if there are any breaches in our thresholds. While we can’t reveal our secret sauce — below are a list of some of the key factors we monitor:

- Unusual pool activity (withdrawals / deposits / swaps)

- Accelerating imbalance of assets (token de-pegging)

- Negative social sentiment / news

Summary

At YOP we embrace the key principles of DeFi — especially transparency. Whilst anyone can look on the blockchain to find information on our strategies, we make it a point to make it easy for our community. We believe it’s key for users to understand where their yield is coming from and how risks are mitigated. Gone are the days of handing over funds to “trusted” entities — we’re embracing the trustless nature of the blockchain.

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YOP

YOP

YOP — Yield Optimisation Protocol