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Use Hybrid Vaults

Use a Hybrid Vault to deposit into a YieldBasis market beyond its standard deposit cap. You add crvUSD backing to a savings vault, such as scrvUSD. The backing earns that vault's savings rate and unlocks deposit capacity in YieldBasis markets. For how the vault works, read Hybrid Vaults.

Prerequisites​

Check that you have each of these:

  • crvUSD or scrvUSD for the backing.
  • The asset of the market that you want to enter, for example WETH.
  • ETH for gas.

Create your vault​

Each address can create one Hybrid Vault only.

  1. Go to yieldbasis.com.

  2. Open Earn.

  3. Select a market with the Hybrid badge.

    Markets list with a WETH market flagged as Hybrid

  4. Connect your wallet.

  5. Create your Hybrid Vault.

  6. Choose the backing vault. scrvUSD is the default. Only vaults on the YB DAO allowlist qualify.

  7. Sign the deployment transaction.

Result: you have a Hybrid Vault that uses the backing vault that you chose.

The deposit, stake, and withdrawal tasks in this guide use these vault tabs: Yield Bearing Vault and Staked Vault, with Deposit, Withdraw, and Convert actions.

Vault tabs: Yield Bearing Vault and Staked Vault, with Deposit, Withdraw, and Convert actions

Deposit crvUSD backing​

Your own backing sets your deposit capacity. To add backing, follow these steps:

  1. On the Deposit tab, go to 1. Add crvUSD to increase deposit capacity.

    Deposit tab step 1: add crvUSD to increase deposit capacity

  2. Select crvUSD or scrvUSD.

  3. Enter the amount.

  4. If the app asks for a token approval, approve the token.

  5. Submit the deposit.

  6. Sign the transaction.

Result: your backing is in the backing vault, where it earns that vault's savings rate and unlocks capacity in YieldBasis markets.

Deposit into a YieldBasis market​

Each position needs crvUSD backing equal to the stablecoin fraction of its value. The YB DAO sets the fraction. For the current fraction and where to find it, read How it works in Hybrid Vaults.

Two limits also apply to the deposit:

  • Market limit. If the deposit takes the market above its Hybrid Vault limit, it reverts with Beyond pool limit.
  • Backing-vault limit. If the deposit takes the backing vault above its limit, it reverts with Beyond vault limit.

For how governance sets each limit and how to check it, read Deposit limits in Hybrid Vaults.

To deposit, follow these steps:

  1. Select the vault:

    • To receive unstaked yb-LP shares, select Yield Bearing Vault.
    • To stake the shares in the same transaction, select Staked Vault.

  2. On the Deposit tab, go to 2. Deposit WETH (the step names the asset of the market).

    Deposit tab: add crvUSD backing (step 1), then deposit WETH into the YieldBasis market (step 2)

  3. Enter the deposit amount.

    The panel shows Required crvUSD, Deposit capacity, Available crvUSD, and the yb-LP amount that you receive.

  4. If your backing does not cover Required crvUSD, add crvUSD in the same transaction. If you do not add it, the deposit reverts with Not enough crvUSD.

  5. Submit the deposit.

  6. Sign the transaction.

Result: the vault holds the new yb-LP position. One vault can hold positions in up to 16 markets at the same time.

Monitor your positions​

For each position, the market page shows these fields:

  • Redemption: the Redemption Value of the position, the amount that a withdrawal returns now.
  • Fundamental Amount: the Fundamental Value of the position, its oracle-priced accounting value.
  • My TRD: the Temporary Redemption Discount (TRD) of your position, the signed gap between the two values.
  • Token rewards: shown for staked positions.

Market TRD shows the TRD of the whole market. The Hybrid Vault Deposits section shows two totals. Total crvUSD Deposits is your total backing. Total crvUSD Available is the amount that you can withdraw.

Stake or unstake​

You can stake when you deposit, or at any time after. Staked shares earn YB emissions, quoted as Emissions APR (Token APR), instead of Fundamental yield (FT APY). Fundamental yield is the Fundamental Value growth from trading fees that unstaked shares earn.

  • To stake, select Yield Bearing Vault, and then Convert.
  • To unstake, select Staked Vault, and then Convert. Emissions stop.

The Convert tab moves shares between the Yield Bearing Vault and the Staked Vault:

Convert tab: move Yield Bearing Vault tokens into Staked Vault tokens

To withdraw a staked position in one transaction, withdraw from the Staked Vault. The vault unstakes and withdraws together.

Claim rewards​

The claim action collects pending rewards from all staked pools and sends them to your wallet. You claim each reward token separately: YB, plus any extra reward token on a gauge.

Withdraw a position​

Check TRD before you withdraw

If TRD is negative, a withdrawal at that time makes the discount a realized loss. Recovery speed depends on the price path. For when to wait and how the gap closes, read Fundamental Value, Redemption Value, and TRD.

  1. On the Withdraw tab, go to 1. Withdraw WETH to unlock crvUSD withdrawal (the step names the asset of the market).

    Withdraw tab: withdraw WETH (step 1) to unlock the crvUSD withdrawal (step 2)

  2. Enter the amount to withdraw.

  3. Submit the withdrawal.

  4. Sign the transaction.

  5. Optional: take backing out. You can take out backing while the rest still covers your open positions.

    1. Go to 2. Withdraw crvUSD.
    2. Select crvUSD or scrvUSD.
    3. Enter the amount.

Result: the underlying asset, and any backing that you withdraw, goes to your wallet. After you exit all positions, you can withdraw all your backing.

Make an emergency withdrawal​

Use this path only when the standard withdrawal fails, for example because the oracle of a pool fails. An emergency withdrawal can return less than a standard withdrawal.

Before you start, unstake the position. The emergency path cannot act on staked shares. If the oracle of the market fails while the market is not killed, unstaking also fails. Your staked shares then stay staked until the oracle works again or the market is killed.

By default, the vault redeems backing to repay the crvUSD debt of the position and deposits the rest back. You can pay this crvUSD from your wallet instead.

  1. Start the emergency withdrawal.
  2. Choose the shares to withdraw.
  3. Sign the transaction.

Result: the vault withdraws the shares that you chose, and the position closes if you chose all of them.

Change your backing vault​

Before you start, close all your positions. The change reverts while a position is open.

  1. Choose to change your backing vault.
  2. Select the new allowlisted vault.
  3. Sign the transaction.
  4. Deposit crvUSD backing again, as in Deposit crvUSD backing.

Result: your holding in the old vault goes to your wallet, as crvUSD by default, and your new backing sits in the new vault.