Here we provide answers to frequently asked questions devoted to YLAYearn Lazy Ape (YLA) was launched one month ago and received some traction, collecting $16m TVL. However, this is a complex financial product that possesses a lot of questions in the community regarding its operation.We are happy to answer all collected questions and help you to understand how YLA works and leverages Defi composability to offer greatQ: Describe YLA in 1 sentenceA: YLA is your savings account, where you can get really good interest on USD-pegged capital based on a basket of investment strategies from Yearn v1 VaultsQ: How is YLA composed? Is it a stablecoin-based index?A: YLA is a pool composed of Yearn v1 Vaults LP tokens. Yearn v1 Vaults LP tokens are interest-accumulating tokens from Vault strategies. Each LP token accumulates interest over time. YLA allows you to supply capital in all 5 Vaults at once, diversify yield using an automatically rebalanced portfolio:Links to contracts of these vaults:yearn Curve.fi cDAI/cUSDCyearn Curve.fi DAI/USDC/USDT (y3Crv)yearn Curve.fi GUSD/3Crv (yvgusd3CRV)yearn Curve.fi yDAI/yUSDC/yUSDT/yTUSDyearn Curve.fi yDAI/yUSDC/yUSDT/yBUSDSo, basically, the underlying assets are really stablecoins. But, in fact, YLA accumulates interest over time. Now YLA passively accumulated APY is approximately 36%, and users can increase it using Sushiswap staking or CVP Boost.Q: Can you share your assumptions on YLA APY, please?A: According to the statistics available, YLA APY can be assumed as 36%. It means that if somebody supplied $10k, in 1 year this YLA stake will worth $13.6k (which means that you can redeem this stake for $13.6k).You don’t need to stake your YLA or do anything else with it to get this “basic APY”, you just need to hold it in your wallet and it will grow in value.YLA itself accumulates interest and grows in value, this is why there are no additional actions required for it. Of course, it is only an assumption based on 1 month of operation. Yields in Defi are very unstable and can change (all popular protocols like Curve/Compound operate this way), so in fact, we cannot predict real income in 1 year. Take into account that it is not investment advice, it is just our observation based on statistics from publicly available sources.Q: How can I receive a bigger APY using YLA?A: Currently there are two options for receiving additional APY using YLA. For both of them, you need to supply liquidity on the YLA-USDC Sushiswap pair first. When you received SLP tokens from this pair, you have two options:Sushiswap Onsen program (now it offers ~18%)-> this option requires only SLP tokens from the YLA-USDC pair. Note, that you can instantly withdraw the only ⅓ of Farmed SUSHI while ⅔ are locked for 6 months.CVP Boost program (maximum APY possible is 105%)-> this option requires stake SLP tokens from the YLA-USDC pair and CVP. Website UI/UX will help you to calculate the size of CVP stake you need for activating CVP boost program. Read rules for calculating CVP boost stake here.For clear understanding we prepared a scheme of YLA composition and options for receiving additional APY:Q: I heard that YLA is a Dynamic AMM pool (DAMM). How does it work?A: The main idea behind PowerIndex v2 Unlimited ETF product is the automatic changing of portfolio composition in order to maximize capital gains for our users. In the case of YLA, we decided to change weights of strategies in the portfolio based on Yearn v1 Vaults TVL. It means that if the Yearn community deployed $100m in yUSD Vault while yvCurve-BUSD has only $50m, the weight of yUSD Vault will be 2x times bigger than yvCurve-BUSD.So, the portfolio of strategies (YLA) will reflect Yearn community choice based on actually deployed capital. Our assumption here is that TVL is a crowdsourced indicator of risk/return factors for Vaults strategies. However, DAMM isn’t activated yet since we need to fix the issue with a 0.5% exit fee from Yearn v1 Vaults (it will affect users’ capital in a negative way during rebalancing). We are working on it right now and plan to share news on this point soon.Q: What will be the next steps of YLA development and adoption?A: First of all, we plan to activate DAMM (the answer above is devoted to this issue). Besides DAMM activation, we plan to promote YLA as possible collateral on lending platforms, add it to all possible Defi integrators, and probably add other trading pairs.Q: Is it possible to swap Vaults LP tokens using YLA?A: Yes. You can use the YLA swap section for this purpose or use 1inch.exchange. YLA is integrated into 1inch so you can swap Yearn v1 Vaults using 1inch interface.FAQ: Yearn Lazy Ape (YLA) was originally published in PowerPool on Medium, where people are continuing the conversation by highlighting and responding to this story.
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