Yearn intern’s 📱 is blowing up with questions about the APYs listed on Yearn’s Fantom vaults
They’re currently overstated
Here’s why 👇
They’re currently overstated
Here’s why 👇
Yearn rates are typically calculated on a weekly or monthly trailing average
This approach smooths out volatility and gives users a representation of yield over time
This approach smooths out volatility and gives users a representation of yield over time
What it doesn’t do is work great when there are temporary spikes (or dips) in yield
We saw that when farming opportunities exploded into 100%+ APY on Fantom as projects rushed to capture TVL so they could receive an NFT drop from @solidlyexchange
We saw that when farming opportunities exploded into 100%+ APY on Fantom as projects rushed to capture TVL so they could receive an NFT drop from @solidlyexchange
Yearn devs configured vaults on Fantom to capture these new yield sources, and that boosted vault yields dramatically
Tens of millions of $$$ were flowing onto Fantom every hour (much of it captured by Yearn)
Tens of millions of $$$ were flowing onto Fantom every hour (much of it captured by Yearn)
Since our displayed rates use a trailing average, we recognized rates were dramatically understated on Yearn’s Fantom vaults
Contributors changed the APYs to reflect the most recent returns from 0xDAO and veDAO
Contributors changed the APYs to reflect the most recent returns from 0xDAO and veDAO
Then, when the madness subsided, APYs were reverted back to their old monthly calculations
That meant actual rates were much lower than displayed (~1% vs the 10-15% displayed)
That meant actual rates were much lower than displayed (~1% vs the 10-15% displayed)
We should have realized our displayed APY would be artificially high for a time and initiated a change sooner. For that, we apologize
This kicked off a lot of discussion, and we've made some big updates to the way we display rates 💙
Read all about it: medium.com
This kicked off a lot of discussion, and we've made some big updates to the way we display rates 💙
Read all about it: medium.com
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