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Overview

Version 3 yVaults iterates on Version 2 by increasing robustness and developing Yearn’s path towards further decentralization, while keeping the same proven product (yield-bearing tokens) that abstract builders and users from the hard work of yield farming. Version 3 will both be able to have the same functionality as Version 2, but with many more added benefits and improvements to continue to grow the Yearn ecosystem.

V3 also sees the introduction of "Tokenized Strategies". In V3 the strategies are now capable of being standalone 4626 vaults themselves. These single-strategy vaults can be used as stand-alone vaults or as a function of the 4626 standard easily added as a strategy to any of the multi-strategy "Allocator Vaults".

Version 3 of yVaults improves on Version 2 by:

  • Increasing vault modularity, allowing for smaller and safer pieces of code.
  • Simplify strategy creation, empowering strategists and reducing the chance for errors.
  • More strategy functionality by implementing the Tokenized Strategy.
  • ERC-4626 compatible for easy integrations.
  • Decreased gas costs to report profits and update debts.
  • Adding new products like ySwaps which increases swap efficiency and yJuniorTranches which allows for different risk profiles.

Modules

Extensible code that can be attached to a yVault to extend functionality over and beyond core base logic.

Smart Modules

Smart Modules implement core vault logic that will be iterated until they can be made immutable. If any Smart Module fails, the vault can live without them just enough to return funds to depositors. When Version 3 launches, the Smart Modules will replicate Version 2 vault behavior.

  • Debt Allocator: Can efficiently allocate debt to different strategies. Added to a Allocator Vault for the best yield opportunities.
  • Accountant: Handles changing fees for vault operations.
  • Deposit/Withdraw Limit Modules: Allows dynamic control over a vaults deposit or withdraw limits for full customization.

Periphery Modules

Periphery Modules are a separate layer of optional contracts to use with vaults and strategies. They are not required but facilitate building around yVaults.

  • Router: Wrapper that handles deposits and withdrawals to/from all vaults and strategies.
  • Yearn Lens: Information aggregator for off-chain apps.
  • ySwaps: Internal swap system. Reduces slippage thus improving net APY.
  • Registry: Handles adding and tracking strategies and vaults.
  • HealthCheck: Guardrail vault operations so that profit & loss reporting is always under acceptable values.
  • Swappers: Pre-built contracts for strategies to inherit to easily implement their desired swap logic.
  • APR Oracles: Retrieve the expected current APY on-chain for different strategies to properly allocate debt.
  • And any others you can come up with!

VaultV3 Specification

Tokenized Strategy Specification

Read More

For more information visit the V3 developer section: https://docs.yearn.fi/developers/v3/overview

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