YOP Documentation
Vaults make up the foundations of YOP

Vaults employ a specific set of Strategies to generate yield on the tokens deposited (such as BTC, ETH or USDC). They make use of smart contracts to continually reinvest earnings, which compound returns and help achieve a high level of yield. By utilising the YOP Vaults, users save on thousands of transactions with their associates gas costs and precious personal time.
Despite what the name "Vault" may suggest, depositors are never locked into any Vault on YOP. That being said, it is generally best to view them as a medium to long term investment tool - in order to be able to see the effects of compounding kick in. On top of the yield that is being generated from the Strategies, depositors also get allocated $YOP tokens depending on the their LockBox position.
User interaction with Vaults and the internal processes

Looking at the Vaults page on the platform, you can see an "APY Range" column. This indicates the current range of returns that can be earned by depositors in the Vault. The lower end is relevant for users who have no (or a very small amount of) $YOP staked and the higher end is applicable to those that have a larger amount $YOP staked - more information on this mechanism is available in the Boosting Returns section.
Illustration of the APY Range for the USDC Vault
Hovering over numbers in the "APY Range" column, there is a further breakdown of the APY's into 2 key components:
  • Base APY: This is the return generated from the underlying Strategies in the Vaults and is earned in the native deposit token. The Base APY is relatively stable and can change based on the underlying Strategies and the value of tokens being harvested and re-invested. See below for more information on "harvesting".
  • Reward APY: This is the return generated from the $YOP tokens that have been allocated to the Vault. The Reward APY is highly variable and depends on a users LockBox position, the market price of $YOP vs deposit token and other factors such as the amount of $YOP allocated to the Vault.

A yopToken is an interest-bearing, tokenised proof of deposit that is received after depositing into any YOP Vault. These tokens are unique for each Vault, e.g. you receive yopETH tokens when depositing into the Ethereum Genesis Vault. Users can view their yopTokens as a receipt of deposit. Losing ownership of yopTokens would mean loosing access to your funds in the Vault.
Whenever you would like to withdraw your tokens from the Vault, you simply initiate a withdraw transaction to exchange the yopTokens for the base Vault tokens. The yopTokens are taken from your wallet and burned, and the deposited assets plus the "Base" returns earned will be given back to you. $YOP returns must be claimed separately from the "My YOP" page.

Vaults have a performance and management fee structure.
  • Management fees equate to 1% of the tokens that are deposited by the user and is taken upon withdrawal. The main purpose of this is to prevent possible exploits - where someone could deposit before a harvest and withdraw straight after, taking a % of gains generated.
  • Performance fees are 10% of the base yield generated and are taken when a harvest is performed on the Strategies in use within the Vault. The performance fees only apply to the Base APY and do not apply to the YOP tokens that are earned as Reward APYs in the Vault.
At present (May 2022), all of the management and performance fees are distributed back to the $YOP stakers in the LockBox. In the future, a portion of these will be allocated to special roles in the community (such as strategists and harvesters).

Harvesting refers to the process of claiming incentive tokens from the strategies in the Vaults and selling them for the base token to re-invest. For example, running a harvest on a Curve strategy involves claiming CRV tokens, selling them for the base asset in the Vault and re-investing them on behalf of users. This process compounds returns and increases the Base APY earned in the Vaults.
The Base APY in the Vaults is only earned once the harvest function is ran for a particular Vault. This means the earnings in the base assets (e.g. ETH, BTC or Stables) are only distributed at time of harvest - leaving before a harvest means forfeiting any returns earned between the previous and upcoming harvest. This is a contrast to the "Reward APY" which accrues at each block and is claimable at any point in time.
For the time being, harvesting is done by the YOP team and frequency largely depends on the strategies and the cost / reward of harvesting compared to the TVL in the Vaults. On average each Vault is harvested once every 2 weeks.
Note: Dune dashboards detailing strategies and harvests will be released soon!
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On this page
What are the Vaults?
How to interpret the Vault returns?
What are the yopTokens?
What is the fee structure for the Vaults?
How often are Vault profits harvested and distributed?