In the yCRV vault, the largest “giant whale” has US$40.6 million in funds and has received a return of US$500,000 in the past three weeks.
Original author: Flipside Crypto
Translator: Lu Jiangfei
By depositing millions of dollars in decentralized liquidity pools to earn interest, Ethereum “whales” are using their own methods to promote the development of the decentralized finance (DeFi) industry.
At present, most DeFi users use yearn.finance. This platform seems to have a group of automated robots that provide people with financial services. All you have to do is deposit money in the “treasury”, and then “wait” for these smart contracts in the liquidity pool. Move assets to generate the highest interest rate-yearn.finance is like opening a very smart savings account for you.
But the problem is that the calculation of DeFi’s real income from farming is not transparent, and it is also difficult to distinguish the income of “farmers” from actual farming. Some people say that the annual return rate of DeFi can exceed 1000%. This statement is misleading, because the interest rate given by these projects is calculated on the basis of “a whole year”, and the actual farming that gives specific rewards usually only lasts a few days or a few days. Weekly, and the reward will gradually decrease over time, so the accurate statement of this indicator should be “expected return.”
yCRV vault
yearn.finance has many different vaults (vaults) for DeFi users to choose from. Each vault has different basic assets and exclusive strategies to achieve return on investment. The most popular one is the yCRV vault. This vault uses yCRV tokens to farm CRV tokens and transaction fees. yCRV is a DeFi tokenized basket based on DAI, USDC, USDT and TUSD.
Below, we use the yVault investment return calculator created by Flipside Crypto COO Matt Bridges to analyze the revenue of three “Ethereum Whales” on yVault. (Chain Wen’s Note: The analysis data comes from a subgraph of thegraph.com platform built by a year.finance developer.)
1. In the yCRV vault, the largest “Whale” has US$40.6 million in funds, and he/she has received a return of US$500,000 in the past three weeks.
The figure below shows the trend of yCRV’s largest whale return on investment. This person has invested a total of 38.5 million yCRV tokens in the yCRV vault, which is worth 40.6 million US dollars (1 yCRV = 1.06 US dollars). The x-axis represents the Ethereum area The block height number on the block chain. This person initially invested in a block height of 10,750,000. The block was verified by miners on August 28 and has since received a return of $497,395.
2. A one-time investment of more than US$97 million has earned US$847,000 in the past three weeks.
The account balance of this “giant whale” on September 2 was 92 million yCRV tokens (block height 10,780,000), valued at approximately 97,705,449 USD. Since August 28, the cumulative investment return of this “whale” has reached 799,194.51 yCRVs, valued at approximately US$847,145.64. A simple calculation yields an investment return of 2.17% and an annual return of 40.46%.
3. Cumulative deposit of 10 million US dollars, three weeks later, 177,000 US dollars.
This “giant whale” did not deposit a large amount of funds at once, but deposited 10.9 million US dollars in the yEarn vault step by step, and then sold it on September 12 (block height 10,850,000), and the income was 167,165 yCRV generations. Currency, about 177,194 US dollars.
What are the risks of DeFi users investing in yVaults?
In general, the risk of investing in yVault is actually very small, because there is basically no financial risk. Even if the Curve price drops to zero, people will not lose any return at best, but will not lose money. The only possibility for them to lose money is that the underlying assets completely lose value-or the stable currency cannot support the pegged exchange rate.
Source link: hackernoon.com
