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Hybrid Vaults

Hybrid Vaults let you deposit BTC or ETH into YieldBasis beyond the standard deposit cap of a market. In exchange, you keep a proportional crvUSD deposit in an allowlisted savings vault, such as scrvUSD. Your crvUSD earns the savings vault's rate. Your liquidity provider (LP) position earns trading fees, or YB emissions if you stake it. Your crvUSD stays in the savings vault. It does not enter the BTC/crvUSD pool that holds your LP position.

Earnings on each side​

Each side of a Hybrid Vault earns from its own source:

  • crvUSD backing. It earns the rate of the savings vault that you chose, for example the scrvUSD savings rate.
  • LP position. The vault holds your LP position as yb-LP shares. A yb-LP share is a pro rata claim on a 2× leveraged Curve LP position. Unstaked yb-LP earns Fundamental yield (shown as FT APY in the app): Fundamental Value growth from trading fees. Fundamental Value is the value of one yb-LP share on the books of LT, the market's vault contract. Staked yb-LP earns Emissions APR (shown as Token APR in the app) from YB emissions. Never add Fundamental yield and Emissions APR for one staked position. For how to choose between the two, read Staked and unstaked economics.

The two sides accrue separately, and each side has its own risks. The crvUSD side has savings-vault smart-contract risk and crvUSD peg risk, but no exposure to the Curve pool. The LP side has the normal YieldBasis market and protocol risks. ChainSecurity and MixBytes audited the Hybrid Vault contracts. For the reports, read Audits.

The Hybrid Vault charges no deposit or withdrawal fees. The fees of a standard YieldBasis market position still apply to the LP position.

Why Hybrid Vaults exist​

Each YieldBasis market has a standard deposit cap that protects the crvUSD peg. YieldBasis markets borrow crvUSD for their leveraged positions, and large BTC or ETH price moves cause large crvUSD swaps inside the underlying Curve pools. Uncapped YieldBasis growth puts pressure on the peg.

Hybrid Vaults create direct demand for crvUSD (you mint it or buy it), which supports the peg. In return, your backing unlocks capacity above the standard deposit cap.

YieldBasis operates with a crvUSD credit line from Curve DAO. Hybrid Vaults are one way to grow toward the limit of that credit line and keep the peg stable. The other is the net-pressure incentive system. It pays crvUSD incentives to a Curve sink pool when markets are out of balance.

How it works​

Each address gets one Hybrid Vault. When you create it, you choose an ERC-4626 vault to hold your crvUSD backing, from an allowlist that governance keeps. scrvUSD is one of them.

The following figure shows where a Hybrid Vault keeps your backing and your positions:

Flowchart of a Hybrid Vault. Your address creates one vault. The vault sends your crvUSD backing to an allowlisted ERC-4626 savings vault, such as scrvUSD, where it earns the savings rate. It sends BTC or ETH to up to 16 market positions, each an LP position in a Curve pool of the asset and borrowed crvUSD. The backing has no path into the Curve pool. A backing rule links the two sides: backing of at least the governance-set stablecoin fraction times the Fundamental Value of open positions, within the market limit and the backing-vault limit.Flowchart of a Hybrid Vault. Your address creates one vault. The vault sends your crvUSD backing to an allowlisted ERC-4626 savings vault, such as scrvUSD, where it earns the savings rate. It sends BTC or ETH to up to 16 market positions, each an LP position in a Curve pool of the asset and borrowed crvUSD. The backing has no path into the Curve pool. A backing rule links the two sides: backing of at least the governance-set stablecoin fraction times the Fundamental Value of open positions, within the market limit and the backing-vault limit.

Your vault sends your crvUSD backing to the savings vault and your BTC or ETH to up to 16 market positions. Each position is a YieldBasis LP position in a Curve pool of the asset and borrowed crvUSD. The backing stays in the savings vault. It never enters the Curve pool. The backing rule links the two sides: your backing must cover the stablecoin fraction of your positions' Fundamental Value.

Your own backing sets your deposit capacity, within two more limits that Deposit limits describes. Other users' backing does not add to your capacity. You can split your capacity across up to 16 markets at the same time.

The vault applies a stablecoin fraction, which governance sets: 45% since the June 2026 YieldBasis DAO (YB DAO) vote. To read the current value, call HybridVaultFactory.stablecoin_fraction(). At 45%, each $100 of position value needs $45 of crvUSD backing.

The requirement follows the value of your positions. If a position's value rises, your withdrawable crvUSD falls. You can withdraw backing only above the amount that your open positions require, so you withdraw an LP position first to free its backing. When you exit all positions, all your crvUSD is free. For the steps, read Use Hybrid Vaults.

Example with two markets​

The following figure shows the backing rule at an example stablecoin fraction of 45%, and how the LP capacity that $10,000 of backing unlocks splits across two markets:

Example at a 45% stablecoin fraction: $45 of crvUSD backing in a savings vault supports $100 of LP position value. Withdrawable backing equals total backing minus what open positions require. $10,000 of backing unlocks about $22,222 of LP capacity, split into $11,111 in the cbBTC market and $11,111 in the WETH market.Example at a 45% stablecoin fraction: $45 of crvUSD backing in a savings vault supports $100 of LP position value. Withdrawable backing equals total backing minus what open positions require. $10,000 of backing unlocks about $22,222 of LP capacity, split into $11,111 in the cbBTC market and $11,111 in the WETH market.

The following example assumes a stablecoin fraction of 45% and scrvUSD as the backing vault. You deposit $10,000 of crvUSD into a Hybrid Vault. This unlocks about $10,000 / 0.45 ≈ $22,222 of LP capacity. You split it: $11,111 into the cbBTC market and $11,111 into the WETH market.

At an example scrvUSD rate of 4.5%, the backing earns about $10,000 × 4.5% = $450 per year before fees. The live rate changes with crvUSD markets. The cbBTC position tracks BTC and the WETH position tracks ETH, each plus trading fees or YB emissions.

Deposit limits​

Two limits apply on top of your backing. Governance sets them separately from the standard deposit caps and can change each one independently.

  • Market limit. Each market has a Hybrid Vault limit on the total value of the market. Deposits by all users, standard and Hybrid, count against it. Governance can also add a personal limit for one vault. To read the limit for your vault, call pool_limits(pool_id) on your HybridVault.
  • Backing-vault limit. Governance can cap the total crvUSD backing that all Hybrid Vaults hold in one savings vault. To read it, call HybridVaultFactory.crvusd_vault_limits(vault). A value of 0 means no limit. A deposit above the limit reverts.

Fields in the Hybrid Vault UI​

The Hybrid Vault UI shows the capacity that your backing unlocks. When you enter a deposit amount on the Deposit tab, the deposit panel shows these fields:

  • Deposit capacity: the capacity that remains after your open positions.
  • Available crvUSD: backing that no position uses.

The Hybrid Vault Deposits section shows two totals:

  • Total crvUSD Deposits: your total backing.
  • Total crvUSD Available: the amount that you can withdraw.

Each market also shows its Fundamental Value, Redemption Value, and Temporary Redemption Discount (TRD). Redemption Value is what a withdrawal returns now, from live pool state. TRD is the signed gap between Redemption Value and Fundamental Value.

Backing and TRD​

The backing requirement uses the position's Fundamental Value, so it does not change with TRD. TRD applies to a Hybrid Vault withdrawal in the same way as to a standard market position. For how TRD reduces what a withdrawal returns, read Fundamental Value, Redemption Value, and TRD.

Backing vault changes​

When you have no open positions, you can switch to another allowlisted ERC-4626 vault. The switch sends your old vault holding to your wallet, as crvUSD by default or as vault shares. Deposit crvUSD again to fund the new vault.

If the YB DAO removes your vault from the allowlist, you can still withdraw. You cannot open or increase a position until you change to an allowlisted vault.

Emergency withdrawal​

The vault has a separate emergency withdrawal path for when the standard withdrawal fails. For example, the standard withdrawal can fail because a pool's oracle fails or a position is in an abnormal state.

The emergency path cannot act on staked positions, so unstake first. If the value oracle of the market fails while the market is not killed, unstaking also fails. A staked position then stays staked until the oracle works again or the market is killed. The path returns the asset and crvUSD in pool proportion. It can require you to repay crvUSD from your backing or your wallet.

On markets 7 to 10, the path still works when the value oracle of the market reverts. It uses the oracle when the read succeeds. The LT contracts of the older markets have no such fallback.