The Curve Wars have been trending for quite some time now. With several top DeFi protocols vying for control by the accumulation of CRV tokens. Interestingly, the higher amount of CRV tokens a DeFi protocol holds translates to the level of influence they will hold over the DEX platform.
Notably, the Curve Wars now have an exciting new innovation. The innovation makes it possible for its users to earn APR as high as 20% on their stablecoin.
Also, the innovation was made possible by integration between Yearn Finance and Inverse Finance. Both DeFi protocols (Yearn Finance and Inverse Finance) will help ensure a high yield percent for the Curve pool.
A new innovation in the Curve Wars arena has enabled 20%+ APR on yours stables.
Read on for how a partnership between @iearnfinance 🤝 @InverseFinance will sustain high yield for this Curve pool.https://t.co/vysJxrXysX
🧵
— wavey0x.eth (@wavey0x) April 29, 2022
More on The Partnership
According to the official tweet, Yearn Finance currently holds a huge percentage of $veCRV tokens. Its $veCRV hoard is estimated to be about 6% of the total $veCRV supply. Notably, Yearn’s $veCRV holdings give it a relatively high level of influence over the Curve DEX platform. This influence is the major driving force of the partnership with Inverse Finance.
According to the announcement, Inverse Finance came up with the idea of a partnership. The DeFi platform made a proposition to Yearn Finance. Asking that it allocates its $veCRV to the DOLA stablecoin gauge. Inverse, on the other hand, will deposit its $DOLA stablecoin into a Yearn Finance Vaults. Therefore, resulting in Yearn having access to all the profits from the DOLA stablecoins in the vault.
With the agreement in place, Yearn has since commenced depositing $veCRV token to the pool. Notably, the pool has also grown exponentially. Currently, it also boasts of having the highest APR in all of Curve stablecoin pools. Both parties also have to function in a trustless and transparent manner. As this is a pre-requisite for the success of the partnership. This also means that either party cannot just send tokens between multi-signatories.
Yearn Vaults | DOLA “Feds” – What You Should Know
Interestingly, Yearn Finance also designed the on-chain protocol used in the partnership. The protocol used includes;
- Yearn Vaults, and
- DOLA stablecoin “Feds”
Yearn Finance Vaults will make it possible for Yearn to receive all the profits and rewards from farming. The vaults will also make it possible for Inverse Finance to withdraw its principal input at any time. Also, the vaults are basically a mix of experimental vaults systems and strategies. All of which were designed to receive a 100% performance fee.
Inverse Finance, on the other hand, makes use of DOLA “Feds”. A complex system of federated contracts focused on directly supplying lending markets with minted $DOLA stablecoins.
However, for the partnership, the “Fed” can only mint new $DOLA stablecoins for the private vault.
The Curve Wars $veCRV pools will also remain pegged to ensure the pool liquidity continues to grow. Also, pegging the pool will help prevent $DOLA stablecoins from diluting the pool. Since its inception, the pool has grown by 4x and is currently undergoing a 2 months (60days) trial period.
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