crYour Guide to YOP Vaults, Strategies and APY Calculations

What are Vaults?

What are Strategies?

How is APY Calculated?

  • Base APY — Represents the returns generated by the underlying Strategies through investing in various DeFi Protocols
  • Reward APY — Represents the additional return being earned as reward for being a YOP Community member.

How is Reward APY Calculated?

  • Vaults are incentivised with YOP tokens from the community emissions pool. The exact amount of YOP allocated varies on a vault-by-vault basis, with higher emissions on new Vaults to attract deposits and grow the Vault’s TVL. The more YOP emissions allocated, the higher the Reward APY in the Vault.
  • YOP allocated to a Vault is distributed among the Vault depositors based on their share of Vault. The greater the number of depositors (or TVL) in the Vault, the further these emissions need to be spread, resulting in overall lower APYs on larger cap Vaults.
  • APYs are expressed in the base token of the Vault. Therefore, to calculate APYs, it is necessary to express the value of the YOP Tokens emitted to a Vault in the base token of the Vault. This means that a doubling of the YOP token price would result in similar increases in Reward APY.

Are Vault Reward APY’s Sustainable?

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