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TVL $10MAPY 1.89%Medium riskUpdated Feb 1, 2025

Yearn V3 WETH-1 yVault

Deposit WETH into Yearn V3 for automated ETH yield strategies using the new modular vault architecture.

ProtocolYearn V3
Networkethereum
SymbolYVWETH-1
CategoryYield Vaults
Underlying assets
WETHETH
Contract address0xc56413869c6cdf96496f2b1ef801fedbdfa7ddb0

What is Yearn V3 WETH-1 yVault?

Yearn V3 WETH-1 is a next-generation vault that deploys WETH across multiple yield strategies. V3's modular architecture enables flexible strategy composition with improved risk management compared to V2.

How This Vault Works

  1. Deposit WETH into the V3 vault
  2. Receive yvWETH-1 tokens representing your share
  3. Vault allocates WETH across approved strategies
  4. Yields compound automatically
  5. Redeem yvWETH-1 for WETH plus accumulated yield
V3 Architecture: Modular design where each strategy is an independent ERC-4626 vault.

Yearn V3 Features

Key V3 improvements:

  • Tokenized Strategies: Each strategy is a separate vault token
  • Flexible Allocation: Easy rebalancing between strategies
  • Protocol Fees: Sustainable fee model for infrastructure
  • Enhanced Management: Better tools for strategy control

WETH Strategy Types

V3 WETH strategies may include:

  • Lending on Aave, Compound, Morpho
  • Liquid staking token strategies
  • Curve/Convex LP positions
  • Recursive borrowing with LSDs
  • Other ETH-denominated opportunities

Fee Structure

V3 fees (vault-specific):

  • Performance fee: Typically 10-20% of profits
  • Protocol fee: Portion to Yearn treasury
  • Management fee: Usually minimal

Risk Disclosures

Smart Contract Risk: V3 is newer code with less battle-testing than V2. Multiple strategy contracts increase complexity. Strategy Risk: Individual strategies can underperform. Multi-strategy design provides diversification. ETH Price Risk: WETH is ETH-denominated. USD value falls with ETH price. Withdrawal Risk: High utilization could temporarily limit withdrawals. Newer Architecture Risk: V3's modular design is more complex. Novel bugs could exist. Governance Risk: Yearn governance controls strategy additions and parameters. Opportunity Cost: May underperform direct liquid staking or other ETH strategies during certain periods.

Related Yield Vaults

USPD/USDC Convex Deposit1.34% APYDOLA/sUSDe Convex Deposit4.65% APYFRAXUSDe Convex Deposit2.50% APYYearn WETH yVault1.82% APYCurve.fi Factory Pool: stETH-ng Convex Deposit1.27% APY
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

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