Apart from choosing the highest APY % on http://yearn.finance, which changes every few minutes, where else to look to pick the best yearn vault for your crypto?
3 things to look for when trying to maximise yield on yearn:
The yield (or APY) changes with every block. So it's useful to see how has it been trending — going up or down over time?
This helps with estimating how will it continue to work.
Tip: look for correlation between historical yield and TVL.
Example: crvBBTC vault. Looking at the historical APY (screenshot below), it's clear it has been trending down over time.
What used to be 19.54% on June 15th is only 3.61% today.
Check how much $$ is inside the vault. This is called TVL, or total value locked.
If it's a low number then not many people trust it with their tokens. Be extra careful if you want to deposit.
Speaking of WBTC, the APY is only at 0.33% today and has been trending at less than 1% for most of the month.
Wondering why do people still have their BTC inside the WBTC vault. 🤔
Have people been recently depositing, or withdrawing?
Example: crvSBTC. This vault has seen an influx of fresh Bitcoin over the past week. The APY (green) went down slightly since 3 days ago, but still good. Interesting candidate to watch.
Given all the above, here are the most interesting Bitcoin vaults on http://yearn.finance today:
To compare all Bitcoin yearn vaults next to each other, go to http://app.joinwido.com and select Bitcoin filter on the top right.
Tip: you can do the same for or stablecoin vaults like USD or EUR.
This post was originally published on Twitter.