yveCRV Rewards

    yveCRV is one of the vault on Yearn Finance and it stands for veCRV-DAO yVault. Users will deposits their $CRV tokens into this vault and converts to yveCRV which users can get weekly Curve trading fees from 3CRV pools (the 3 pools LP token). Another vault, yvBOOST which was introduced in end of April 2021, is basically yveCRV but on steroid where the earned fees are harvested and then converted to more yveCRV tokens and deposited back to the vault. Currently, APR for yveCRV is at 39.75% and yvBOOST is at 64.48%.

    First, let's take a look at claim count for yveCRV depositers. There is some spikes in claim counts and number of claimers at end of April followed by dip and spike again the weeks after respectively. From there on, the claim numbers has went down drastically.

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    The yvBOOST Vault was initially announced by Yearn Finance on April 30th this year. So, soon after yvBOOST went live, we can see an increase in volume of 3crv being claimed by users. This could be people claimed all their rewards and planning to migrate to the new yvBOOST vault where users no longer need to claim as it will be done automatically. The highest number of claims is on end of May with 180K 3crv being claimed. From this graph, we can say that users tend to accumulate their rewards before claiming rather than claiming every other week.

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    Now, let's see the how much gas that yveCRV holders has spent for claiming the 3crv tokens. We are seeing the same pattern as claim counts as this is directly proportional to each other. The highest amount of as used was at end of April and also end of May. In the second graph below, we can see that percentage of gas used for claiming 3crv over total gas used on Ethereum network corresponds to amount of gas used to claim 3crv.

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    Now let's see how much has yveCRV holder spent on transaction fees in USD. We see some sudden spike in tx fees spent in end of August and in May before the crash. Since tx fees is denominated in Ether, this could relate to performance of Ether price. We also can see how much tx paid for claiming made up of total fees collected across Ethereum network.

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    3crv is pool consist of 3 stablecoins(DAI,USDC and USDT) so each 3crv is most of the time 1 USD. So now, lets see percentage of fees paid per 3crv token. From the graph below, we can see that the fees paid by yveCRV users are significantly higher before yvBOOST was introduced compared to after introduction (on avg 2.5% vs < 0.5%). For example, if you claim 100 3crv tokens, you lose 3 3crv before yvBOOST introduction to basically nothing in yvBOOST and you will get rewarded more. So from this, we can conclude that users actually paid too much transaction fees to claim 3crv before introduction of yvBOOST. Retail users like you and me who prefers to harvest rewards weekly are advised to move to yvBOOST where we can expect higher return in longer period rather than spending too much on tx fees every week. It also will help to change your paper to alphachad diamond hand. If you are long-term believer in YFI and CRV, then yvBOOST is a much better vault for you.

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